Exempt income not disclosed in ITR vis a vis revision under section 263

CA V.K. Subramani

For the taxpayers when the income admitted is accepted by the Department it provides relief for the reason that there is no uncertainty with regard to tax liability. It may so happen that the case is selected for scrutiny under section 143(3) and it amplifies the tension and anxiety of the taxpayer. However, where the assessment is completed under section 143(3) it provides again a big relief in case the returned income is accepted or a meagre addition to the returned income is made. However, the disappointment may happen when the higher authority upon seeing the assessment under section 143(3) invokes revisionary jurisdiction contained in section 263.