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2022 (4) TMI 739 - AT - Income TaxValidity of Revision u/s 263 - period of limitation or time barred order - Re-assessment was completed by making addition on account of prior period expense - book profit under section 115JB towards grants, subsidies and consumer contributions were not being properly calculated by the AO in the original assessment proceedings - CIT set aside the reassessment order, and directed the AO to frame assessment afresh after proper enquiries/ verification - HELD THAT:- No doubt the excess claim of depreciation on grants, subsidies and consumer contributions were subject matter of proceedings only in the original assessment passed under section 143(3) which is dated 30.12.2010. In the reassessment proceedings the issue is related to “prior period expenses” claimed by the assessee which was in the re-assessment order dated 30.12.2015. Therefore the present impugned order dated 22.03.2018 passed under section 263 is clearly time barred as per section 263(2). Further, jurisdictional High Court in the case of CIT Vs. Gujarat Forging P.Ltd [2008 (7) TMI 1029 - GUJARAT HIGH COURT] following Supreme Court judgment in the case of Alagendran Finance Ltd. [2007 (7) TMI 304 - SUPREME COURT] held that revision proceedings initiated under section 263 is beyond period of limitation and quashed the same. In view of the above binding judgment, we have no hesitation in holding that Revision proceedings initiated under section 263 by the Pr.CIT is beyond period of limitation, since the issue of computation of book profit under section 115JB towards grants, subsidies, consumer contributions are not subject matter of re-assessment proceedings and but arising from original assessment proceedings vide order dated 3.12.2010 which is clearly is time barred. Thus, the additional ground raised by the assessee are allowed. Thus order passed by the AO neither an erroneous nor prejudicial to the interest of Revenue and therefore the initiation of 263-proceeings itself is unwarranted - Decided in favour of assessee.
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