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2021 (3) TMI 407 - ITAT MUMBAIRevision u/s 263 - reopening of assessment u/s 147 - book value per share of the assessee company did not justify the issue of shares at a premium, and also the nature and source of such unjustified premium remained unproved and unexplained within the meaning of Sec. 68 - HELD THAT:- AO while framing the assessment in the case of the assessee for A.Y 2009-10, by not bringing the impugned amount of share premium to tax in the hands of the assessee company had thus, by so doing acted as per the mandate of law as then so available on the statute and thus, taken a possible and plausible view which by no means could have been dislodged by the Pr. CIT in exercise of his revisional jurisdiction under Sec.263 of the Act. Period of limitation - Contention of the A.R that as the period of limitation provided for under sub-section (2) to Sec. 263 in the present case was to be reckoned from the end of the financial year in which the intimation under sub-section (1) to Sec. 143 was passed in the case of the assessee, and not from the order of reassessment passed under Sec.143(3) r.w.s 147, dated 13.11.2014, the impugned order passed u/s 263 was thus barred by limitation is acceptable that as the alleged error was not the subject matter of the reassessment proceedings under Sec.147 of the Act, therefore, the period of limitation contemplated in sub-section (2) to Sec. 263 would stand triggered with reference to the date on which the initial intimation under Sec. 143(1) was passed in the case of the assessee company and the same by no means could be related to the date of passing of reassessment order under Sec. 143(3) r.w.s 147, dated 13.11.2014. The impugned order of revision passed by the Pr. CIT under Sec. 263 of the Act pertaining to the aforesaid issue which was not the subject matter of the reassessment order passed by the AO under Sec. 143(3) r.w.s 147, dated 13.11.2014, could have been validly passed within a period of two years from the end of the financial year in which the intimation under sub-section (1) of Sec. 143 sought to be revised was passed, which not having been so done within the aforesaid prescribed period was thus barred by limitation. We are of the considered view that the Pr. CIT had wrongly assumed jurisdiction and therein passed the order under Sec. 263 r.w.s. 254 of the Act, dated 04.12.2019, which thus for the reasons discussed at length by us hereinabove cannot be sustained and is liable to be vacated. Accordingly, we herein ‘set aside’ the order passed by the Pr. CIT under Sec. 263 r.w.s 254 - Decided in favour of assessee.
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