Russell Properties (P.) Ltd. v. A. Chowdhury, Addl. CIT

109 ITR 229High Court1977#2757 most cited

What is Russell Properties (P.) Ltd. v. A. Chowdhury, Addl. CIT authority for?

The power of revision under Section 263 is not arbitrary and cannot be exercised merely because the Assessing Officer adopted one of the permissible courses in law, even if it leads to a loss of revenue. An assessment order is not erroneous and prejudicial to the revenue if the Assessing Officer has taken a plausible view or conducted an inquiry, as the revisional power has limitations and cannot be used for fresh enquiries into concluded matters.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2025.

Also referred to as

Russell Properties v A Chowdhury · Section 263 · revision power · erroneous and prejudicial to revenue · Malabar Industrial · permissible view by AO · scope of revisional power · inadequate inquiry · quasi-judicial power · arbitrary power · Calcutta High Court

Sections most often in play

Section 263Section 143(3)Section 144BSection 142(1)Section 147Section 148Section 36(1)(vii)Section 80HHC(3)

Issues it is cited on

section 80hhc(3)section 263ofsection 17(2)section 263(1)section 80hhcsection 80hhmalabar industrialassessment order erroneouslack of enquiryinadequate enquiryrevision u/s 263revision under section 263

Judgments citing Russell Properties (P.) Ltd. v. A. Chowdhury, Addl. CIT

M/S. Enfield Gems & Jewellery Ltd., Kolkata vs. CIT, Kolkata-I, Kolkata

In the result, assessee’s appeal stands allowed

ITA 33/KOL/2015[2012-2013]Status: DisposedITAT Kolkata29 Jun 2016AY 2012-2013

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2012-13

Section 132Section 143(3)Section 263Section 271ASection 41(1)

…. ITO 1977 CTR (SC) 32 : (1977) 106 ITR 1 (SC), Sirpur Paper Mills Ltd. vs. ITO 1977 CTR (AP) 138 : (1978) 114 ITR 404 (AP), Dawjee Dadabhoy & Co. vs. S.P. Jain & Anr. (1957) 31 ITR 872 (Cal) and Russell Properties Pvt. Ltd. vs. A. Chowdhury, Addl. CIT (1977) 109 ITR 229 (Cal) relied on Conclusion : In order to exercise jurisdiction under s. 263, Commissioner must have material to prima facie come to a conclusion that order of ITO is erroneous as also prejudicial to interest of Revenue. Revision—Validity—ITO allowing certain expenditure as revenue expenditure after making enquiries—Commissioner initiating proce…

Mr. B.N. Malthesh, Bangalore vs. ITO, Bangalore

In the result, the assessee's appeal for Assessment Year 2009-10 is allowed and the stay petition filed by the assessee is dismissed

ITA 329/BANG/2014[2009-10]Status: DisposedITAT Bangalore20 Mar 2015AY 2009-10
For Respondent: Shri Bijoy Kumar Panda, Addl. CIT (D.R)
Section 143(2)Section 143(3)Section 263Section 44A

…actors were available from the records called for and examined by such authority. Our aforesaid conclusion gets full support from a decision of Sabyasachi Mukharji J. (as his Lordship then was) in Russell Properties Pvt. Ltd. v. A. Chowdhury, Addl. CIT [1977] 109 ITR 229 (Cal). In our opinion, any other view in the matter will amount to giving unbridled and arbitrary power to the revising authority to initiate proceedings for revision in every case and start re-examination and fresh enquiries in matters which have already been concluded under the law. As already stated it is a quasi judicial power hedged in with…