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2022 (11) TMI 774 - AT - Income TaxRevision u/s 263 by CIT - Period of limitation - whether the receipt of compensation for shortfall in guaranteed performance from Suzlon Energy Ltd is liable to tax in the facts and circumstances of the instant case? - HELD THAT:- It is pertinent to know that A.Y.2009-10 is a completed assessment as on the date of assumption of jurisdiction u/s.153C in the hands of the assessee. Admittedly, only incriminating material which was handed over is a petty cash book marked as Annexure A-8 pertains only to A.Y.2011-12 and not relatable to A.Y.2009-10. Hence, AO was fully justified in not looking into this issue while framing the search assessment on 29/03/2016. Hence, no error could be attributed in his order. Hence, the pre-requisite twin conditions of Section 263 cannot be cumulatively satisfied in the instant case and consequently invocation of revision jurisdiction u/s.263 of the ACT on the same is unsustainable in the eyes of law. We also find that the issue on receipt of compensation for shortfall in guaranteed performance from Suzlon Energy Ltd was claimed as capital receipt by the assessee in revised return filed on 31/03/2011 itself. AO had framed the original assessment u/s. 143(3) of the Act on 30/12/2011 by considering the said revised return. If at all there is any error, the error could only be in the said assessment order dated 30/12/2011. Hence, the time limit for reckoning revision jurisdiction u/s 263 has to be from that date on 30/12/2011 in terms of Section 263(2) of the Act and not from the search assessment framed on 29/03/2016. Hence, we hold that the revision order passed u/s.263 by the PCIT for A.Y.2009-10 is barred by limitation and accordingly, quashed. Appeal of the assessee is allowed.
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