Assumption Of Jurisdiction Based On Wrong Facts Can't Form Basis For Initiating Reopening: Mumbai ITAT

In a recent case, Mumbai ITAT ruled that assuming jurisdiction based on erroneous facts for reopening assessments under section 263 of the Income Tax Act is improper. The tribunal emphasized that such jurisdiction cannot be exercised merely due to a difference in opinion on factual matters unless they are wholly unsustainable. It highlighted the necessity for the Commissioner to demonstrate the assessment order's prejudice to the interest of revenue to justify invoking section 263. This decision underscores the importance of factual accuracy in tax assessments and the limits of revisionary powers under the Income Tax Act.