Section 263(1) of the Income Tax Act

Income-tax Act, 2025: s.377

Section 263(1) falls under section 263 of the Income-tax Act, 1961, which corresponds to section 377 (Revision of orders prejudicial to revenue) of the Income-tax Act, 2025.

Read section 377 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 263(1) is Vedanta Ltd. v. CIT (124 Taxmann.com 435), cited in 35 of the 52 judgments on BharatTax that turn on this section.

Leading authorities on Section 263(1)

Vedanta Ltd. v. CIT
124 Taxmann.com 435 · 2021 · High Court
35
citing judgments

A revision under section 263 by the Principal Commissioner of Income Tax requires both an assessment order that is erroneous and prejudicial to the interest of the revenue. The Principal Commissioner must demonstrate a lack of inquiry or inadequate investigation by the Assessing Officer.

PCIT v. Zuari Maroc Phosphates Ltd.
126 Taxmann.com 170 · 2021 · High Court
9
citing judgments
CIT(E) v. Slum Rehabilitation Authority
107 Taxmann.com 18 · 2019 · High Court
3
citing judgments
CIT, Mumbai v. Chandan Magraj Parmar
135 Taxmann.com 55 · 2022 · High Court
3
citing judgments
CIT v. Nirma Chemicals Works (P.) Ltd.
182 Taxmann.com 183 · 2009 · High Court
3
citing judgments

Judgments on Section 263(1)

Kailashbai Manubhai Kahor, Rajkot vs. The Pr. Commissioner of Income-Tax, Rajkot-1, Rajkot

In the result, the appeal of the assessee is dismissed

ITA 347/RJT/2025[2016-17]Status: DisposedITAT Rajkot12 Oct 2026AY 2016-17

Bench: Dr. B.R.R. Kumar, Vice-Shri Sonjoy Sarma

For Appellant: Shri Mehul Ranpura, ARFor Respondent: Shri R V Arun Prasad, CIT-DR
Section 139Section 144BSection 147Section 148Section 263Section 263(1)Section 56(2)(vii)

Mohammed Afzal & Bros, Ahmedabad vs. Deputy Commissioner of Income Tax, Central Circle 1(2), Ahmedabad

ITA 1159/AHD/2026[2022-23]Status: DisposedITAT Ahmedabad22 Sept 2026AY 2022-23
For Appellant: Shri Sunil TalatiFor Respondent: Shri Aroon Kumar,CIT-DR
Section 143(3)Section 263Section 263(1)

Measage.Osaka Alloys and Steel (P) Ltd, Jalandhar vs. Deputy Commissioner of Income Tax Circle-II, Jalandhar

The appeal stand dismissed

ITA 347/ASR/2019[2013-14]Status: DisposedITAT Amritsar20 Feb 2026AY 2013-14

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Shri Udayan Dasgupta, Jm आयकर अपील सं. / Ita No.347/Asr/2019 (िनधा"रण वष" / Assessment Year: 2013-14) M/S Osaka Alloys & Steel (P) Ltd. Dcit Circle - Ii बनाम/ 428, Mota Singh Nagar, Jalandhar Jalandhar Punjab - 144001 C/O Bhagat & Co. (Ca) Vs. 16 Brij Nagar, Jalandhar, Punjab - 144001 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaco-7097-G (अपीलाथ"/Appellant) (" थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Adjournment Request " थ"कीओरसे/Respondent By : Sh. Farhat Khan (Cit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 03-02-2026 घोषणाकीतारीख /Date Of Pronouncement 20.02.2026 : आदेश / O R D E R

For Appellant: Adjournment requestFor Respondent: Sh. Farhat Khan (CIT) - Ld. DR
Section 115JSection 143(3)Section 263Section 263(1)Section 264Section 80I

Aahana Sales Private Limited, Ahmedabad vs. PCIT(Central), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 878/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad28 Nov 2025AY 2018-19

Bench: S/Shri Sanjay Garg & Makarand V.Mahadeokarasstt.Year : 2018-19 Aahana Sales Private Limited Pr.Cit(Central) 3, Bhavya Enclave Vs. Ahmedabad. Vidhya Vihar Society Usmanpura Ahmedabad. Pan : Aajca 1231 B (Applicant) (Responent) Assessee By : Shri Vivek Chavda, Ar Revenue By : Shri R.P. Rastogi, Cit-Dr सुनवाई क" तारीख/Date Of Hearing : 11/11/2025 घोषणा क" तारीख /Date Of Pronouncement: 28 /11/2025 आदेश/O R D E R Per Makarand V.Mahadeokar, Am:

For Appellant: Shri Vivek Chavda, ARFor Respondent: Shri R.P. Rastogi, CIT-DR
Section 143(1)Section 144Section 147Section 148Section 263Section 263(1)

Yashwantrao Chavan Maharashtra Open University, Nashik vs. Commissioner of Income Tax, -Exemption, Pune

In the result, the appeal filed by the assessee is dismissed

ITA 1386/PUN/2025[2021-22]Status: DisposedITAT Pune11 Aug 2025AY 2021-22

Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

For Appellant: Shri Sharad A. ShahFor Respondent: Shri Amit Bobde
Section 11Section 143(2)Section 143(3)Section 263

Usuf Trading Co., Murshidabad vs. Principal Commissioner of Income Tax, Kolkata - 1, Kolkata

In the result, the appeal of the assessee is allowed

ITA 396/KOL/2025[2017-18]Status: DisposedITAT Kolkata13 May 2025AY 2017-18

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Principal Commissioner Of Income Tax, Kolkata - 1, Usuf Trading Co., Office Of The Income Tax Officer, Near Railway Station, Dhuliyan Ward - 42(1), Murshidabad, 39, Jangipur, Murshidabad, Vs. R.N. Tagore Road, Behrampur, West Bengal, 742202 Murshidabad, West Bengal, 742101 (Appellant) (Respondent) Pan No. Aacfu4764B Assessee By : Shri S.K. Tulsiyan, Ar Revenue By : Shri Sanat Raha, Cit (Dr) Date Of Hearing: 07.05.2025 Date Of Pronouncement : 13.05.2025

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Sanat Raha, CIT (DR)
Section 142(1)Section 143(3)Section 194CSection 194C(6)Section 263Section 263(2)Section 40A(3)

Sms Mevac Uk Ltd., New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

ITA 9738/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Apr 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) (Int. Tax.), New Delhi

ITA 4044/DEL/2019[2016-17]Status: DisposedITAT Delhi09 Apr 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Mevac Uk Ltd., New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

ITA 3070/DEL/2019[2015-16]Status: DisposedITAT Delhi09 Apr 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh, New Delhi vs. JCIT (International Taxation), Circle-3(1)(2), New Delhi

ITA 5521/DEL/2018[2015-16]Status: DisposedITAT Delhi09 Apr 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh, New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

ITA 7570/DEL/2017[2014-15]Status: DisposedITAT Delhi09 Apr 2025AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh, New Delhi vs. ACIT (International Taxation), Circle-3(1)(2), New Delhi

ITA 7569/DEL/2017[2013-14]Status: DisposedITAT Delhi09 Apr 2025AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh, New Delhi vs. DCIT (International Taxation), New Delhi

ITA 256/DEL/2017[2012-13]Status: DisposedITAT Delhi09 Apr 2025AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

ITA 6161/DEL/2015[2011-12]Status: DisposedITAT Delhi09 Apr 2025AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

ITA 6359/DEL/2014[2010-11]Status: DisposedITAT Delhi09 Apr 2025AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. Aacit, Circle- 3(1)(2), Intl. Taxation, New Delhi

ITA 1074/DEL/2014[2007-08]Status: DisposedITAT Delhi09 Apr 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl Taxation, New Delhi

ITA 6106/DEL/2012[2009-10]Status: DisposedITAT Delhi09 Apr 2025AY 2009-10

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. ACIT, Circle- 3(1)(2), Intl. Taxation, New Delhi

ITA 2144/DEL/2012[2007-08]Status: DisposedITAT Delhi09 Apr 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Sms Group Gmbh (Formerly Sms Siemag Ag), New Delhi vs. Addl. DIT, New Delhi

ITA 5580/DEL/2011[2008-09]Status: DisposedITAT Delhi09 Apr 2025AY 2008-09

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 2008-09 With Assessment Year: 2007-08 With Assessment Year: 2007-08 With Assessment Year: 2009-10 With Assessment Year: 2010-11 With Assessment Year: 2011-12 Vs. Addl. Dit/Ddit, M/S. Sms Siemag Ag (Formerly Sms Demag Ag) Circle-2(2), Intl. Taxation, C/O- Mohinder Puri & Co., New Delhi Ca, 1A-D, Vandhna, 11 Tolstoy Marg, New Delhi Pan: Aadcs1173J (Appellant) (Respondent) With Assessment Year: 2012-13 With Assessment Year: 2013-14 With Assessment Year: 2014-15

Section 143(3)Section 144CSection 144C(1)Section 263(1)

Income Tax Officer-42(2)(3), Kautilya Bhavan, Bkc vs. Kaushik Balubhai Madhwani, Girgaon, Mumbai

In the result, appeal of the revenue is dismissed

ITA 2645/MUM/2023[2015-16]Status: DisposedITAT Mumbai20 Mar 2025AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2015-16 Income Tax Officer-42(2)(3) Kaushik Balubhai Madhwani Kautilya Bhavan, G-Block, 364, Cigaratewala Bldg, S.V.P. Vs. Bkc, Bandra Kurla Complex, Rd., Girgaon, Mumbai- 400004 Bandra East Mumbai-400051 Pan No. Aetpm 0755 P Appellant Respondent

For Appellant: Mr. Sharwan Kumar JhaFor Respondent: 19/03/2025
Section 132(4)Section 143(3)Section 147Section 68