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MCQ 4 - AUDIT OF LLP FIRM

on May 14, 2021

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Need of Revisional Authorities under Tax laws

Need of Revisional Authorities under Tax laws There is an utmost importance of Revisional authorities under Tax laws (both under Income Tax Law and GST Law) to safeguard and protect the interest of revenue as they act as a reviewer of the orders passed by the lower authorities which fall under their respective jurisdictions. Under Income Tax Act, 1961 there exists a provision under section 263 and 264 where Commissioner of Income tax can revise the orders passed by its subordinating authorities i.e. A.O. falling under its jurisdiction. The main reason behind introducing this provision under Income Tax Act, 1961 was to prevent its subordinating authorities to take bribe from assesse by passing Assessment Orders which are prejudicial to the interest of revenue, therefore section 263 was introduced to give the powers to CIT to revise the assessment orders if found prejudicial to the interest of revenue. On the contrary, the situation may occur when A.O. may pass such an assessment o...

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MCQ 4 - AUDIT OF LLP FIRM

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