[Income Tax] Assessing Officer Not Only An Adjudicator But Also An Investigator, Cannot Remain Oblivious To Claim Without Enquiry: Kerala HC

The Kerala High Court addressed the Income Tax Commissioner’s power to exercise revisional jurisdiction under Section 263 of the Income Tax Act in the case of Cochin International Airport Ltd. The Court clarified that the Commissioner can indeed revise orders if they are deemed erroneous or prejudicial to the interests of the revenue. The decision established that even if the assessment order is not perverse, the Commissioner can invoke his powers to rectify issues regarding tax compliance. The judgment underlined the broad scope of Section 263 and the Commissioner’s discretion in revising assessments when errors that affect the tax revenue are identified.