Capital Gains Must Reflect Only Real Consideration Received: ITAT quashes S.263 Revision [Read Order]

This Taxscan article reports an ITAT decision quashing a Commissioner’s revision under Section 263 where the tribunal held that capital-gains computation must reflect the real consideration actually received by the assessee. The ITAT scrutinised the revenue’s imputation of additional consideration and concluded that the assessing officer’s view was not erroneous enough to warrant revision; factual evidence of genuine price consideration and transactional reality carried decisive weight. The order emphasises settled principles that book adjustments or notional additions cannot substitute for demonstrable, real receipts when determining capital gains. By setting aside the revision, the ITAT reaffirmed that revenue powers under s.263 are exercisable only when there is a clear illegality or manifest error, and not merely because an alternative view is open.