Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 360 - AT - Income TaxRevision u/s 263 - Reopening of assessment u/s 147 - disallow expenditure on purchases from overseas in terms of Section 40(a)(i) for non deduction of tax at source from such payment - HELD THAT:- Reassessment order was passed on 26.03.2015 after making disallowance of purchase. Aggrieved thereto petitioner has filed appeal before CIT(Appeals) under Section 246A(1)(b), which is pending. PCIT has issued impugned notice dated 08.06.2016 under Section 263 on the ground that assessment order dated 26.03.2015 passed u/s 143(3) was erroneous and prejudicial to the interest of Revenue inasmuch as sales tax subsidy accruing to petitioner under scheme of Government of Maharashtra had not been brought to tax as “revenue receipt”. As contended that aforesaid notice dated 08.06.2016 is barred by limitation u/s 263. As the issue of taxability of sales tax subsidy as per Maharashtra Government was not at all an issue of reopening of the assessment, Hon court held that limitation for 263 proceedings will start from the original assessment order. Issues subject to revision were pertaining to original assessment and not the reopened assessment; the limitation should also start from the original assessment. In this case as original assessment order u/s 143(3) of the act was passed on 16.01.2014, the revision thereof could have been taken up to 31.3.2016. Impugned order u/s 263 of the act was passed on 26/2/2019, therefore it is clearly beyond the limitation prescribed u/s 263 (2) of the act. Thus the impugned order is barred by limitation and hence quashed. - Decided in favour of assessee.
|