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2023 (6) TMI 1047 - SC - Income TaxRevision u/s 263 - period of limitation for passing order - reckoned from the date of the original assessment order or from the date of the reassessment order? - ITAT and High Court held that proceedings u/s 263 by the Commissioner as barred by limitation - HELD THAT:- The issues before the Commissioner while exercising the powers u/s 263 relate back to the original Assessment Order and, therefore, the limitation would start from the original Assessment Order and not from the Re-assessment Order. We are fortified with our view by the decision of Alagendran Finance Ltd. [2007 (7) TMI 304 - SUPREME COURT] as held once an Order of Assessment is re-opened, the previous order of assessment will be held to be set aside and the whole proceedings would start afresh but the same would not mean that even when the subject matter of re-assessment is distinct and different, the entire proceedings of assessment would be deemed to have been re-opened. Meaning thereby, only in a case where the issues before the Commissioner at the time of exercising powers under Section 263 of the Act relate to the subject matter of re-assessment, the limitation would start from the date of Re-assessment Order. If the subject matter of the re-assessment is distinct and different, in that case the relevant date for the purpose of determination of period of limitation for exercising powers under Section 263 of the Act would be the date of the original Assessment Order. Thus no error has been committed by the ITAT or even the High Court in holding the proceedings under Section 263 of the Act by the Commissioner as barred by limitation.
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