Section 258 of ITA, 1961 : Section 258: Power Of High Court Or Supreme Court To Require Statement To Be Amended

Explanation using Example

Imagine a scenario where a company, XYZ Pvt. Ltd., has a dispute over the calculation of its income tax liability. The dispute reaches the Income Tax Appellate Tribunal (ITAT), which makes a decision. However, the company is not satisfied with the ITAT's decision and appeals to the High Court.

Upon reviewing the case, the High Court finds that the information provided is insufficient to make a clear judgment. Perhaps the data regarding the company's deductions is incomplete, or there is a lack of clarity on how certain revenues were accounted for.

As per Section 258 of the Income-tax Act, 1961, the High Court decides to send the case back to the ITAT with directions to gather more detailed information on the company's financial transactions or to clarify the legal points in question. The ITAT must then follow these instructions and resubmit the case to the High Court for a final decision.