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2019 (1) TMI 1063 - AT - Income TaxRevision u/s 263 - Disallowance under section 80-IB, Interest on TDS and Addition under section 14A - Held that:- There is no escape from the position that what was not the subject matter of notice issued and the order passed under section 263 of the Act, cannot be made subject matter of assessment in pursuance to an order passed under section 263 of the Act. It cannot be disputed, as has also not been done, that the items of additions/disallowances now made by the Assessing Officer, i.e., disallowance of ₹ 26,24,573/- under section 80-IB of the Act; interest of ₹ 1,699/- on TDS and addition of ₹ 36,310/- under section 14A of the Act, were not the subject matter of either the notice issued, or the order passed under section 263 of the Act. In “CIT vs. D.N. Dosani” (2005 (10) TMI 35 - GUJARAT HIGH COURT), it has been held that where the assessee was called upon by the ld. Pr. CIT to tender an explanation qua two items mentioned in the show cause notice, Pr. CIT could not have treated any further item or part of the assessment order as being erroneous and prejudicial to the interests of the Revenue without giving the assessee an opportunity of being heard; and that, therefore, what the Commissioner himself could not have done, could not be permitted to be done by the Assessing Officer while giving effect to the order under section 263 - Tribunal was right in holding that in the fresh assessment order passed in pursuance of the consolidated order under section 263 of the Act, the Assessing Officer was entitled to consider only two items which had been considered by the Commissioner and was not entitled to consider any other item afresh for making addition. The orders passed by the ld. CIT(A) for both the years are, thus, reversed, except:- (i) the ld. CIT(A)’s action in directing the Assessing Officer, for assessment year 2010-11, to verify whether M/s Pool Services has disclosed the contract job work charges of ₹ 1,66,700/- in its profit & loss account and paid the income tax thereon, on the fulfillment of such verification, the addition would stand deleted; (ii) the action of the ld. CIT(A) in confirming the addition of ₹ 45,725/- made under section 14A of the Act, for assessment year 2011-12, as this issue does arise from the order issued under section 263 and was correctly made the subject matter of assessment pursuant to the revisional order.
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