TMI Blog2022 (12) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... It is only on such reasons to believe and the issues raised in reasons recorded, AO can pass assessment order or re-assessment and it cannot travel beyond the reasons unless something tangible material comes on record during such assessment /reassessment proceedings. Here in this case, it is not a case that AO has reopened assessment on account of any set off of long term capital loss or determination of ALV u/s 22 for the inventory unsold flats. Ld. PCIT in his revisionary jurisdiction u/s 263 cannot enlarge the scope of reopening u/s 147 and go beyond the reasons recorded. Here, the present order of the Ld. PCIT is on the issues which are beyond the scope of section 147 and therefore, he could not have roped in some other issues based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed before us by Ld. Counsel of the assessee is that the order of the Ld. PCIT is barred by limitation. 3. The facts in brief are that assessee has filed its return of income on 30.09.2012 declaring total loss of Rs. 17,76,360/-. Thereafter, assessee has filed revised return on 01.01.2013 and the said return was duly processed u/s 143(1). Further the case was reopened u/s 147 by issuance of notice u/s 148 dated 31.03.2019 and in response to the same, the case was reopened on the ground of some information was received that assessee was beneficiary of penny stock scrip of Nyssa Corporation Ltd. and assessee has incurred short term capital loss of Rs. 4,03,625/-. Ld. AO after detail discussion had added the said short term capital loss of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 640/Mum/2021). Thus, the entire order of Ld PCIT u/s 263 is barred by limitation. 6. On the other hand, Ld. DR submitted that there was no assessment order as earlier it was only intimation u/s 143(1) which was issued. The assessment was framed for the first time only u/s 143(3) /147 and therefore Ld. PCIT sought to revise only this order passed u/s 143(3) /147 dated 18.12.2019. 7. We have heard the rival submissions and also perused the relevant findings given in the impugned order as well as material placed on record. Here in this case, the assessment was reopened u/s 147 on the following reasons recorded:- Information is received in the case of Raj Real Estate finvest Pvt. Ltd. from Kolkata via email on 29.03.2019 in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961. The income has escaped assessment due to failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the AY 2012-13 and the income which has escaped assessment amounts to or likely to amount to Rs. 10,50,399/- or more. 8. Thus, the entire scope of assessment was on the grounds raised in the reasons recorded, i.e., whether the assessee was beneficiary of accommodation entries of long term capital gain on sale of shares of Nyssa Corporation Ltd. Ld. AO had discussed this issue in detail and has made specific addition wherein he has disallowed short term capital loss of Rs. 4,03,625/- which has been added u/s 68. However, Ld. PCIT in his show cause u/s 263 has r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issues, which have been raised in the show cause notice and have been discussed in the revisionary order, were neither the subject matter of reopening u/s 147 nor the issue on which assessment was sought to be reopened. Once the return income stands concluded either by way of intimation or later on by way scrutiny proceedings u/s 143(3), then it is said to be that assessment has been completed. If the return income has been accepted and no scrutiny has been done, then also it is treated as assessment has been completed and has attained finality. Such assessment can be reopened u/s 147, if AO has reason to believe based on any material or information coming on record that income chargeable to tax has escaped assessment. It is only on su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered the rival submissions. It is not disputed that save and except the issue of non-genuine Purchases all other issues dealt with by the Commissioner of Income-tax in the order dated March 30, 2009, were not a subject matter of the assessment order passed on June 28, 2006, under section 143(3)/147 of the Act. All the other issues on which the Commissioner of Income-tax is seeking to exercise the jurisdiction under section 263 of the Act were concluded by virtue of an intimation under section 143(1) of the Act which admittedly was done beyond a period of two years prior to the notice dated March 17. 2009, issued under section 263 of the Act. Section 263(2) of the Act provides that the order would be made in exercise of the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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