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2019 (1) TMI 98 - AT - Income TaxRevision u/s 263 - set–off of brought forward loss of assessment year 2009–10 against the total income computed for the impugned assessment year u/s 144 r/w rule 2 of the First Schedule - AO has initiated action u/s 147 for the purpose of revising the income / loss determined in the said assessment order - Held that:- What the DRP has directed the AO to do is to consider the income of the assessee for the impugned assessment year at ₹ 212,34,56,000, before making any adjustment on account of dividend and section 14A. There is absolutely no direction by the DRP to re–adjust or re–work out the loss determined in the assessment order passed for the preceding assessment years. It is further evident from the final assessment order that the Assessing Officer has implemented the aforesaid direction of the DRP in letter and spirit and after computing the total income of the assessee as per the provisions of the Act the Assessing Officer has allowed set–off of brought forward loss of assessment year 2009–10. That being the case, it cannot be said that the assessment order passed is erroneous. On a perusal of the assessment order dated 25th March 2013, passed under section 143(3) of the Act r/w section 144C of the Act for assessment year 2009–10, it is very much clear that while completing the assessment the Assessing Officer has determined the loss for that year at ₹ 405,93,06,230 and has allowed carry forward of the same. It is an accepted factual position that the aforesaid assessment order passed for the assessment year 2009–10 still holds good as it has neither been subjected to any proceeding under section 263 of the Act nor it has been varied/disturbed by any other mode or manner. Though, AO has initiated action u/s 147 for the purpose of revising the income / loss determined in the said assessment order, however, it is a fact on record that such re–assessment proceeding has been stayed by the Hon'ble Jurisdictional High Court. Thus, as on date, the assessment order passed under section 143(3) of the Act for Assessment Year 2009–10 remains valid and so also the loss determined therein. It is equally true that at this stage learned PCIT could not have exercised jurisdiction under section 263 of the Act, to revise the assessment order passed for the assessment year 2009–10 insofar as it relates to computation of income / loss. Therefore, learned PCIT having no authority in law to initiate any action to rectify an error, if at all there is any, in the assessment order passed for assessment year 2009–10, has attempted to do so by invoking his revisional jurisdiction for assessment year 2011–12. AO having passed the assessment order in compliance to the directions of the DRP, the assessment order so passed cannot be held to be erroneous and prejudicial to the interests of Revenue. Therefore, the primary conditions of section 263 of the Act are not fulfilled in the present case - Decided in favour of assessee
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