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2022 (7) TMI 116 - ITAT KOLKATARevision u/s 263 - reopening of assessment u/s 147 - period of limitation - HELD THAT:- As the issue on which the ld. PCIT revised and set aside the reassessment order passed u/s 143(3) r.w.s. 147 comprised of issues of current liability, withdrawal against debit capital account and not charging of service tax in the profit and loss account which were undoubted not the subject matter of reassessment proceedings. Therefore, the period of limitation has to run from the date of assessment as framed under section 143(3) but there was no assessment u/s 143(3) - We have also examined the possibility of treating the intimation passed u/s 143(1) of the Act as assessment order and limitation can be reckoned from that order. Even in that scenario our conclusion would be same . Therefore, in view of this, we are inclined to hold that the revisionary jurisdiction exercised by the ld. PCIT is wrong and thus cannot be sustained as it hopelessly barred by limitation. Even otherwise on merits, the issues raised by the ld PCIT in the revisionary proceedings which finally resulted into the reassessment order dated 18.12.2013 being revised and set aside in no way can be said to be issues rendering the assessment order to be erroneous - the issues raked up and proposed by the ld PCIT in the order passed u/s 263 of the Act were not such which could render the assessment as erroneous. The main purpose of exercising the revisionary jurisdiction u/s 263 of the Act was non examination of current liabilities Rs. 55,10,278/-, withdrawals of Rs. 33,09,490/- against debit capital balance and not charging of service tax to the profit and loss account nor showing it as payable in balance sheet. We observe from the audited balance sheet that substantial part of the current liability is coming from the preceding year and non examination of the same could render the assessment as erroneous is not understandable. Similarly the withdrawals against negative capital balance can render the assessment as erroneous is also beyond our understanding. Lastly the non charging of service tax and not showing in the balance sheet can influence the correctness of the order. In our considered opinion these issues are not such which can render the assessment erroneous. Similarly what prejudice is caused to the revenue is also not clear from the order of the ld PCIT. In order to revise the order the twin conditions have to be satisfied i.e. the order has to be erroneous and secondly it must be prejudicial to the interest of the revenue. This ratio has been laid down in the case of Malabar Industrial Co. Ltd Vs CIT (2000 (2) TMI 10 - SUPREME COURT] - But in the instant case before us these conditions are not satisfied. - Decided in favour of assessee.
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