TMI Blog2021 (9) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... essment in pursuant to search action u/s.143(3) r.w.s. 153C of the Income Tax Act, 1961. Once issue was not a subject matter of assessment proceedings pursuant to search, then date of assessment goes back to original assessment passed u/s.143(3) of the Act and if you go by said assessment order, then date shall be reckoned from 28.03.2016. If you go by that date, revision order passed by the PCIT dated 09.12.2020 is clearly beyond two years from the end of financial year in which order sought to be revised was passed. This legal position is fortified by the decision in the case of M/s.Skyline Builders Vs. CIT [ 2019 (1) TMI 1533 - KERALA HIGH COURT ] where under identical set of facts, the Hon ble High Court held that where no revisional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a search action u/s.132 of the Income Tax Act, 1961 was conducted in the case of Seyadu group of concerns, Tirunelveli on 28.06.2017. Consequent to search, assessment has been completed u/s.143(3) r.w.s 153C of the Income Tax Act, 1961 on 24.12.2019 and determined total income at ₹ 8,39,57,050/-, after making additions towards unexplained cash credit u/s.68 of the Act for ₹ 2,22,04,000/-. 3. The case has been, subsequently taken up for revision proceedings u/s.263 of the Income Tax Act, 1961, on the ground that assessment order passed by the Assessing Officer is erroneous insofar as it is prejudicial to the interests of revenue on account of allowing deduction u/s.80IA of the Act to the tune of ₹ 7,63,323/- without ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 24.12.2019, observed that proposed revision of assessment order is taken up for revising assessment order dated 24.12.2019 passed u/s.143(3) r.w.s.153C of the Act, but not assessment order passed u/s.143(3) dated 28.03.2016 and thus, proposed revision proceedings is well within prescribed time limit provided u/s.263 of the Income Tax Act, 1961. The learned PCIT also discussed issue in light of provisions of section 153A and held that once search action took place, then assessment for six assessment years immediately preceding assessment year in which search took place gets reopened and Assessing Officer shall have power to assess / reassess total income including undisclosed income, if any found as a result of search and thus, once s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which original assessment order was passed. In this case, original assessment order was passed on 28.03.2016 and the issue of deduction u/s.80IA was examined by the Assessing Officer. Further, said issue was neither subject matter of reassessment nor was examined by the Assessing Officer and hence, question of revision of assessment order passed u/s.143(3) r.w.s 153C of the Act, dated 24.12.2019 does not arise. Therefore, if original assessment order dated 28.03.2016 is considered, then revision order passed by learned PCIT dated 09.12.2020 is clearly barred by limitation and liable to be quashed. 6. The learned DR, on the other hand, submitted that once search takes place, original assessment gets wiped out and the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The provisions of section 263 of the Income Tax Act, 1961 empowers Pr.CIT / CIT to revise assessment order passed by the Assessing Officer, if PCIT satisfies that assessment order passed by the Assessing Officer is erroneous insofar as it is prejudicial to the interests of revenue. Sub-section (2) of section 263 prescribes time limit for passing revision order, as per which no order shall be made under sub-section (1) after expiry of two years from the end of financial year in which order sought to be revised was passed. If a combined reading of sub-section (1) and (2) of section 263 of the Act, it is very clear from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can exercise his revisional powers on the issue which was subject matter of assessment proceedings whether or not said issue was discussed by the Assessing Officer. In this case, the learned PCIT has taken up revision proceedings on the issue of deduction claimed u/s.80IA of the Act, and said issue was not a subject matter of assessment in pursuant to search action u/s.143(3) r.w.s. 153C of the Income Tax Act, 1961. Once issue was not a subject matter of assessment proceedings pursuant to search, then date of assessment goes back to original assessment passed u/s.143(3) of the Act and if you go by said assessment order, then date shall be reckoned from 28.03.2016. If you go by that date, revision order passed by the PCIT dated 09.12.2020 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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