Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 418 - AT - Income TaxRevision u/s 263 - period of limitation - to be computed from the date of original assessment order or re-assessment order - compensation whether to be taxed in the hands of the assessee or assessee is entitled or not entitled to claim loss - Reopening of assessment as contemplated under section 147 concluded against assessee - HELD THAT:- The ratio laid down in Alagendran Finance Ltd. [2007 (7) TMI 304 - SUPREME COURT] and Ashoka Buildcon [2010 (4) TMI 152 - BOMBAY HIGH COURT] clinches the issue in favour of the assessee. Further, a reading of the original assessment order would reveal that the issue relating assessment in term of s. 2(24)(iv) of the Act, of Rs.1.16 crores was a subject matter therein. Thus, in the aforesaid scenario, the assessment order passed under section 143(3) r.w.s. 147 of the Act cannot be considered as erroneous and prejudicial to the interest of revenue to subject it to proceeding under section 263 of the Act. If, at all, any order of the subordinate authority which could have been considered as erroneous and prejudicial to the interest of revenue in allowing, either due to lack of enquiry or otherwise, is the original assessment order passed under section 143(3) of the Act and not the re-assessment order. Therefore, the period of limitation prescribed under section 263(2) of the Act would run from the original assessment order. Being conscious of the fact that the original assessment order could not be revised under section 263 of the Act due to bar of limitation, as provided under sub section (2) of section 263 of the Act, PCIT, as it appears, has proceeded to revise the assessment order passed under section 143(3) r.w.s. 147 of the Act to get over the hurdle of limitation. This, in our view, is impermissible. Thus, based on the foregoing reasoning, we hold that the impugned order of PCIT revising the order passed under section 143(3) r.w.s. 147 of the Act is unsustainable. Appeal of assessee allowed.
|