Have you received notice from the office of commissioner of income tax (CIT ) for revision of the assessment order passed in a case which was earlier selected under CASS ? As you know , this power to revise the order vests in CIT under section 263 of the Income Tax Act . But it seen that this provision (that is enacted to protect the interest revenue) is callously invoked by the authorities . More so , when Finance Act 2015 has inserted Explanation 2 in section 263 with effect from 01/06/2015 under which it has been provided that that an order passed by the Assessing Officer shall be deemed to be erroneous and prejudicial to the interests of the revenue, if, the order is passed without making inquiries or verification which should have been made the order is passed without making inquiries or verification which should have been made.
But , in my considered opinion, despite such Explanation , the provision u/ 263 can not be invoked in cases selected for CASS , even if on many points the A.O did not enquire . This post is all about the illegality of the action of CIT in issuing notice u/s 263 if it is issued in large number of cases for CASS selected scrutiny for assessment year 2012-13 onwards.