TMI Blog2022 (12) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... on proceedings carried out under section 154 - It is pertinent to mention here that the order can be rectified under section 154 if there is an error apparent on record as occurred in the said order. The assessee vide his application had submitted to AO regarding the applicable rate @ 20% of long-term capital gains and set off of unabsorbed depreciation, whereupon the AO passed the rectification order. AO was not supposed to re-visit the entire assessment order or to re-assess the income in a rectification order passed under section 154 - It was beyond the jurisdiction and scope of the powers of the ld. Assessing Officer under section 154 to make an addition by way of revisiting the entire assessment order and thereby reassess the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see : Shri Siddharth Jhajharia, A,R. Shri Sujoy Sen, A.R. For the Revenue : Shri Sudipta Guha, CIT(DR) ORDER PER SANJAY GARG, JUDICIAL MEMBER:- The appeal filed by the assessee is directed against the order of ld. Principal Commissioner of Income Tax-3, Kolkata (hereinafter referred to as PCIT ) dated 10.06.2020 exercising his revision jurisdiction under section 263 of the Income Tax Act, 1961. 2. The ld. PCIT in this case exercising his revision jurisdiction under section 263 of the Income Tax Act has set aside the assessment order holding the same as erroneous and prejudicial to the interest of revenue with a direction for denovo assessment after making necessary verification and enquiries for the following reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arise out of the said rectification order passed by the ld. Assessing Officer under section 154 of the Income Tax Act and hence, therefore, the order passed by the ld. PCIT was not sustainable; That the issue relating to buy-back of shares had been duly examined by the Assessing Officer in the assessment proceedings carried out under section 143(3) of the Income Tax Act, whereby the assessment order dated 28.12.2017 was passed; That the provisions of section 115QA of the Income Tax Act are applicable to the buy-back of shares under section 77A of the Companies Act, 1956 (as then existed) and since in the case of the assessee, the shares were bought back under specific orders passed by the Company Law Board Bench under section 402 of the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this case was passed on 28.12.2017. The issue relating to the levy of tax under section 115QA was examined by the ld. Assessing Officer in the said assessment proceedings. As per the provisions of section 263(1), ld. PCIT/CIT can exercise his revision jurisdiction and thereby may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the ld. Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue. However, subsection (2) to section 263 provides that no order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. 5.1. In the case in hand, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income in a rectification order passed under section 154 of the Income Tax Act. It was beyond the jurisdiction and scope of the powers of the ld. Assessing Officer under section 154 of the Income Tax Act to make an addition by way of revisiting the entire assessment order and thereby reassess the income of an assessee on a debatable issue. Therefore, it cannot be said that there was any error occurred in the rectification order passed by the ld. Assessing Officer under section 154 of the Income Tax Act. 5.2. Moreover, the assessee had also demonstrated during the assessment proceedings that the provisions of section 115QA were not applicable in its case as per the relevant provisions as were in force for the assessment year under co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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