TMI Blog2009 (12) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ether in the facts and circumstances of the case, the Appellate Tribunal was right in holding that the order of the Commissioner of Income-tax passed under section 263 of the Income-tax Act, 1961 for the assessment year 2000-01 was barred by limitation by taking the date of assessment order and not the date of the order of rectification under section 154 as the date with reference to which the period of limitation under section 263(2) has to be reckoned ?" 2. The facts : The assessee-company engaged in the construction of water treatment plant filed its return of income for the assessment year 2000-01 onNovember 30, 2000admitting a total income of Rs. 4,48,84,554. The return of income was processed under section 143(1) onJuly 6, 2001and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is assailed before this court in this appeal by formulating the above question of law. 3. The learned counsel for the Revenue reiterated the grounds of appeal precisely to the effect that once the order passed under section 143(3) is rectified under section 154, as per the theory of merger, the order passed under section 143(3) got automatically merged with the order passed under section 154. So the period of limitation has to be reckoned from the date of passing of the order under section 154 of the Act. For which he relied on the decision of the Supreme Court in the case of Hind Wire Industries Ltd. v. CIT reported in [1995] 212 ITR 639 (SC). 4. We have heard the argument of the learned counsel and we are not able to subscribe our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder sought to be revised was passed. While issuing the show-cause notice, for the purpose of revision of assessment under section 263, the Commissioner of Income-tax has stated that for the assessment year 2000-01, it was seen that the assessee have filed return of income on November 30, 2000 admitting nil income, that the assessment was subsequently completed under section 143(3) of the Act assessing the income for the year at Rs. 1,21,82,188, that while completing the assessment, the Assessing Officer had among other things disallowed deduction under section 80-IA relating to water treatment projects, that a sum of Rs.3,14,46,497 being the profit on water supply project had been allowed as deduction under section 80-IA, that was subseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the orders of assessment, the assessee's claim relating to `Lease Equalisation Fund' was accepted. Thereafter orders of reassessment were initiated in respect of three other items but not the item relating to `Lease Equalisation Fund' and reassessments were made. Thereafter, the Commissioner, by an order datedMarch 29, 2004, initiated revision proceedings only in relation to the item `lease Equalisation Fund'. The Appellate Tribunal held that the revision proceedings were barred by limitation as they were initiated more than four years after the original assessments; and the High Court dismissed the appeal therefrom. The Department appealed to the Supreme Court" 9. The Supreme Court further held as follows (headnote) : "affirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, the section definitely gives power to the Commissioner of Income-tax. The deciding factor in the present case is that the complaint of the Commissioner of Income-tax, refers to the order passed under section 143(3) and not the amended order under section 154. Hence the decision of the Supreme Court Hind Wire Industries Ltd. v. CIT [1995] 212 ITR 639 is no way applicable to the facts of the case. 12. For the foregoing reasons and in the light of the Supreme Court judgment in the case of CIT v. Alagendran Finance Ltd. reported in [2007] 293 ITR 1 referred to above, we are of the view that there is no question of law much ..... X X X X Extracts X X X X X X X X Extracts X X X X
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