TMI Blog2010 (1) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... under the proviso applies to him as well - Held that: the proviso to section 14A prohibits all situations where the Officer is otherwise entitled or required to revise an assessment which includes orders issued by the Commissioner under section 263 or order of enhancement issued by the CIT (Appeals) in exercise of his power above referred - Decided in the favour of assessee - IT APPEAL NO. 587 OF 2009 - - - Dated:- 14-1-2010 - C. N. RAMACHANDRAN NAIR AND V. K. MOHANAN, JJ. P.K.R. Menon and Jose Joseph for the Appellant. Joseph Kodianthara and Terry V. James for the Appellant. JUDGMENT Ramachandran Nair, J. The question raised in the appeal filed by the revenue is whether the Tribunal was justified in cancelling the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment for the purpose of disallowing the expenditure wrongly allowed, the Commissioner is also bound by the said prohibition and so much so the order issued under section 263 by the Commissioner is illegal and unsustainable. It is against this order of the Tribunal that the revenue has filed this appeal. We have heard standing counsel appearing for the appellant-revenue and senior counsel Sri. Joseph Markose appearing for the respondent-assessee. 2. Section 14A introduced by Finance Act 2001 with retrospective effect from 1-4-1962 is as follows : "14A. For the purpose of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst reopening of concluded assessments for periods prior to 1-4-2001 and even though Commissioner s authority under section 263 is not expressly provided therein, the bar under the proviso applies to him as well. We are of the view that the proviso to section 14A is intended to provide finality for concluded assessments where deductions for earning exempted income would have been allowed and therefore unless the proviso applies to Commissioner of Income tax as well, the purpose of the proviso will be defeated. Further, in our view, the bar against the Assessing Officer passing an order enhancing the assessment stated in the proviso takes in an order which the Officer may have to pass pursuant to the direction issued by the Commissioner un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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