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2017 (4) TMI 1620 - AT - Income TaxRectification of mistake u/s 154 - MAT addition u/s 115JB - period of limitation - addition on account of book profit u/s 115JB in respect to provision for diminution in view of long term investment by resorting through rectification u/s 154 - whether the order of the AO u/s 154 to rectify the order giving effect to the Tribunals order is bar by limitation or not? - HELD THAT: - In this case since the original order was subjected to appeal and hence provisions of section 154(IA) of the Act would be applicable. We notice from the provision of Section 154(1A) of the Act which provides that the AO can rectify the order in respect of a matter other than the matter which has been considered and decided by the appellate/revisional authority. In the instant case since the issue of diminution in value of an asset for calculating book profit was not a subject matter of appeal or revision, the original order u/s. 143(3) of the Act dated 27th February 2004 is the order which can be rectified by the AO and since the order passed in 2004 cannot be rectified after a period of 4 years, the order passed under 154 of the Act dated 29th March 2014 is barred by section 154(7) of the Act. It is a settled position that the AO while giving effect to the Tribunal's order cannot go beyond the directions of the Tribunal and since in the instant case the issue of calculation of book profit qua diminution in the value of an asset was not the subject matter of the appeal, the Revenue is not justified in contending that the order is within the time limit. Hon’ble Supreme Court in the case of Alagendran Finance Ltd [2007 (7) TMI 304 - SUPREME COURT] was dealing with section 263(2) of the Act read with clause(c) to Explanation 263(1) which is identical to section 154(1A) as held that since issue of lease equalization fund was not the subject matter of reassessment proceedings, the limitation for revising the assessment order qua lease equalization fund will start from the original assessment order passed u/s. 143(3) of the Act and not from the date of reassessment order passed u/s. 147 - Decided in favour of assessee.
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