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2013 (4) TMI 142 - KERALA HIGH COURTReview petition - Reassessment u/s 147 - Scope of the proviso to the Section 14A - expenditure in relation to exempted income - reopening of concluded assessments - CBDT Circular No.11 of 2001 - Held that:- when assessment stands set aside and remanded for reconsideration by the assessing authority, such assessment cannot be treated as a concluded assessment and so much so, the Circular referred to therein does not bar revision of assessment by the Commissioner under Section 263 of the Act for the purpose of making disallowance under Section 14A. In fact, the scope of the proviso to Section 14A was not considered in the said decision at all. Obviously, the facts arising in these cases are not similar to the facts based on which we rendered our judgment in Catholic Syrian Bank Ltd. v. CIT [2009 (8) TMI 750 - KERALA HIGH COURT] because in all these cases, assessment involved remained concluded and the powers of the Commissioner to suo motu order revision of assessment under Section 263 was considered with specific reference to the proviso to Section 14A, which is part of the statute. The proviso is not procedural but guarantees vested rights of parties against reopening concluded assessments. So far as concluded assessments are concerned, the proviso makes it clear that the assessee should not be subjected to disallowance either by reopening assessment under Section 147 or under Section 154 for raising demand of tax after disallowance or for withdrawing refund granted. If the right of the assessee cannot be taken away by the Assessing Officer, we see no reason why it can be permitted to be done by the Commissioner under Section 263 to achieve the same purpose, which is prohibited under the proviso to Section 14A. - Review petition dismissed.
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