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2013 (11) TMI 370 - AT - Income TaxWhether proceedings initiated u/s 263 of the Act is time barred as it is beyond the period of two years from the end of the financial year in which the original assessment order u/s 143(3) of the Act was passed – Whether the limitation u/s 263 begin to run from the original assessment order u/s 143(3) or from the re-assessment order u/s 147 of the Act – Held that:- Reliance has been placed on the judgment in the case of CIT vs. Alagcndran Finance Ltd. [2007 (7) TMI 304 - SUPREME Court] - ratio laid down by the Hon’ble Supreme Court, the limitation prescribed u/s 263(2) of the Act would begin to run from the original assessment order and not from the re-assessment order - The Hon’ble Court further held that the scope of reassessment cannot be extended to the extent of the issues which were never subject matter of re-assessment; hence the doctrine of merger would not apply – Ratio laid down by Bombay High Court in the case of CIT vs. ICICI Bank Ltd. [2012 (2) TMI 308 - BOMBAY HIGH COURT], issues on which the CIT invoked jurisdiction u/s 263 were never subject matter of reassessment proceedings, the notice issued u/s 263 of the Act on 26-11-2008 from the end of the financial year 2004-05 is barred by limitation and consequently the order passed u/s 263 of the Act is also invalid - Order passed u/s 263 by the CIT being void ab initio – Decided in favor of Assessee.
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