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2021 (1) TMI 471 - AT - Income TaxRevision u/s 263 - Reopening of assessment u/s 147 - HELD THAT:- When re-opening of the assessment proceedings started, it was on the basis that some income had escaped assessment on the amount of remuneration to the directors since the assessee did not comply with Section 297 and 314(1B) of the Company Act, 1956 - Assessee gave detailed reply to the AO satisfying him that these provisions are not applicable in his case. AO therefore, stopped the re-opening proceedings and accepted the original assessment passed u/s.143(3) with the total loss shown of (-) ₹ 6,25,277/- dated 29.12.2016 vide order u/s.143(3) r.w.s 147. Therefore, it cannot be said that the AO has not applied his mind and has not made any enquiry. Whether the Ld. Pr. Commissioner of Income Tax in exercising of his power vested u/s. 263 can revise that reassessment order with the intention of bringing into tax some other items which do not form part of the reasons recorded at the time of issuing notice u/s.148? - In answer to this, we find the Hon‟ble Jurisdictional High Court in the case of CIT Vs. Jet Airways (I) Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] and in the case of CIT Vs. Shri Ram Singh [2008 (5) TMI 200 - RAJASTHAN HIGH COURT] has held that when no addition was made regarding the item in respect of which reasons were recorded for reopening of the assessment, the Commissioner could not exercise his jurisdiction u/s.263 of the Act in order to bring to tax other items of additions. Proceedings undertaken u/s.147/148 was prima facie on the issue of remuneration of ₹ 2,00,19,537/- paid to the directors of the assessee. Pr. Commissioner of Income Tax in his order surpassed his jurisdiction asking the AO to examine the issue of sale of immovable property by the assessee and issue of undisclosed TDS to be verified by the AO which were not at all the items forming part of the reasons recorded at the time of issuance of notice u/s.148. Taking we are of the considered view that the Commissioner of Income Tax was not correct in law while resorting to passing order u/s.263 and in view thereof, we quash the order passed u/s.263. Appeal of the assessee is allowed.
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