TMI Blog2013 (1) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... n to issue which was not subject matter of the reassessment proceedings, it was held that the period of limitation provided for under sub-section (2) of section 263 would begin to run from the date of the order of assessment and not from the order of reassessment. The scope of remand pursuant to the order of the Tribunal remitting the matter to the A.O., was limited to the addition of Rs. 59,56,000/-, evidently, therefore, such deduction u/s 80I was not in issue in the remand proceedings. Under the circumstances, the limitation qua the issue of grant of deduction u/s 80I would have to be computed from the date of the original assessment order wherein the Assessing Officer had granted 30% deduction on the total income inclusive of the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of Rs. 59,56,000/- in respect of unverified share application money received by the assessee. He also granted deduction of Rs. 15,88,490/- under section 80I of the Act at the rate of 30% calculated on the total assessed income inclusive of the above addition of Rs. 59.56 lacs. The assessee carried the matter in appeal before the Commissioner (Appeals) who deleted the addition of Rs. 59,56,000/-. Against the said order, the revenue went in appeal to the Tribunal, which remanded the matter to the Assessing Officer on the issue pertaining to the addition of Rs. 59,56,000/- for deciding the same afresh in accordance with law. Pursuant to the remand, the Assessing Officer framed a fresh assessment order and again made an addition of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the assessment order was made on 31st March, 2005 whereas the order under section 263(1) was made on 30th March, 2007 before the expiry of two years from the end of the financial year in which the assessment order was made and as such was made within the prescribed period of limitation. The Tribunal was, therefore, not justified in holding that the order under section 263(1) of the Act was barred by limitation. 5. The facts as emerging from the record reveal that in the initial assessment order an addition of Rs. 59,56,000/- was made in respect of unverified share application money received by the assessee. In the said order, the Assessing Officer had granted relief under section 80IA at the rate of 30% calculated on the total assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 which was not income derived by the assessee from any industrial activity as contemplated under section 80I of the Act, the allowance of deduction of Rs. 15,88,490/- by the Assessing Officer had rendered the order erroneous insofar as it was prejudicial to the interests of the revenue. In the aforesaid factual backdrop the Tribunal, noted that the subject matter of remand was distinct and different than the question of correctness of the deduction under section 80I of the Act and was accordingly of the view that if at all the Commissioner wanted to invoke the provisions of section 263 of the Act, he had to exercise jurisdiction within two years from the date of the original assessment order wherein deduction under section 80I was initiall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act were barred by limitation. The High Court upheld the said order. Before the Supreme Court, it was contended on behalf of the revenue that in view of the Explanation to section 263(3) of the Act and also in view of the doctrine of merger, the limitation period commenced from the date of the reassessment order viz. 28.3.2002 and not from the date of the initial assessment, and as the proceeding under section 263 was initiated on 5.3.2004, the provision of section 263(2) was not attracted. Dismissing the appeal, the Supreme Court held that the order passed by the Commissioner of Income-tax clearly demonstrated that only that part of the assessment order which related to the lease equalisation fund was found to be prejudicial to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer for reconsideration of the issue pertaining to addition of Rs. 59,56,000/- credited in the books of account by way of share application money on the ground that the same was an unexplained credit out of income from undisclosed sources of the assessee. The question of deduction under section 80I of the Act, inclusive of undisclosed income under section 68 of the Act was not subject matter of remand. In the assessment order made pursuant to remand the addition of Rs. 59,56,000/- was sustained and deduction of 30% under section 80I of the Act as allowed under the original assessment order, was granted. The provision of section 263 of the Act has been invoked by the Commissioner of Income-tax as while computing the deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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