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2021 (8) TMI 677 - HC - Income TaxRevision u/s 263 - Period of limitation - To be commenced from original assessment order or re-assessment order u/s 147 - Though reopening of assessment u/s 147 initiated but no addition was made by the AO - CIT observed that, claim of business loss was erroneous and prejudicial to the interest of Revenue - HELD THAT:- Explanation III to Section 147 of the Act will not alter the position nor improve the case of the Revenue. By virtue of the said Explanation, the Assessing Officer is empowered to assess or re-assess income in respect of any issue, though it has not been specifically mentioned as a reason for reopening under Section 148(2) of the Act. In the case on hand, the jurisdiction under Section 263(1) of the Act was exercised with reference to an issue, which was covered in the original assessment order dated 28.12.2006 and it was not an issue, based on which, the reopening of assessment was made under Section 143 of the Act. For all purposes, the period prescribed under Sub-Section (2) of Section 263 of the Act should commence from 31.3.2007 and the two years' period would come to an end on 31.3.2009. As it is not in dispute that the proceedings u/s 263 of the Act were initiated well beyond the said date, exercise of such power has to be held to be without jurisdiction and barred by limitation. Decided against the Revenue
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