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2022 (7) TMI 75 - AT - Income TaxRevision u/s 263 - reopening of assessment concluded against assessee - period of limitation - HELD THAT:- The principal Commissioner of income tax has been bestowed upon with a power under section 263 of the Act that he may call for and examine the records of any proceedings under this act. On such examination, if he considers that any 'order' passed in those proceedings by the AO is erroneous in so far as it is prejudicial to the interest of the revenue, he may revise such order as the circumstances of the case justify. He may enhance, modify or cancel the assessment order and may also direct the AO to cause examination of the details and further pass an order. But he can do so only after granting assessee an opportunity of hearing. However according to the provisions of sub-section (2), such order could be passed only within the period of two years from the end of the financial year in which the order sought to be revised was passed. Similar issue in case of R K Steel Syndicate [2007 (4) TMI 397 - ITAT MUMBAI] considered that in case no additions are considered necessary by the assessing officer on the issues on which reassessment proceedings are resorted to, it cannot be open to him to make any other additions also. Therefore by allowing PCIT extended time limit of 2 years will amount to allow revenue to do something indirectly which act prohibits directly. Thus the order under Section 263 of the Act dated 23rd March, 2021 is held barred by limitation and hence, quashed. - Appeal of assessee allowed.
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