Section 377 (Act of 2025) — the law in short
What the courts have decided on section 377 (Act of 2025), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v Shree Manjunathesware Packing Products
Supreme CourtHelps department
The Commissioner has issued a notice under section 263 on the strength of a Departmental Valuation Officer's report that reached the Assessing Officer only after my assessment was over. Can he revise on material that was not on the file when the order was passed?
Yes, on these facts. The Supreme Court held that it was open to the Commissioner to take into consideration all the records available at the time of examination by him, and so to consider a valuation report that the Departmental Valuation Cell submitted after the assessment order had been passed. The Court read clause (b) of the Explanation to section 263(1), which declares that 'record' shall include and shall be deemed always to have included all records relating to any proceeding under the Act available at the time of examination by the Commissioner, and held that the Commissioner may look not only at the record of that proceeding but at the record relating to it. It also held that the narrower reading had never been the settled law, even for orders passed before the 1988 amendment.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
