Appeals allowed by Tribunal against revision orders for tax years 2011-12 & 2012-13 due to lack of jurisdiction.

The Tribunal allowed the assessee's appeals and set aside the revision orders issued by the Principal Commissioner of Income Tax-2, Kolkata for the assessment years 2011-12 and 2012-13. The Tribunal held that the Principal Commissioner lacked jurisdiction to revisit matters already decided by the Commissioner (Appeals). Consequently, the Tribunal ruled in favor of the assessee on issues related to deduction under section 80IE, computation of tax liability under section 115JB, and payment of tax under section 115O, leading to the quashing of the impugned orders for both assessment years.

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Issues:
1. Revision order passed by Ld. Pr. CIT-2, Kolkata under section 263 of the Income-tax Act, 1961 for AYs 2011-12 and 2012-13.

Analysis:
The Appellate Tribunal ITAT Kolkata dealt with appeals filed by the assessee against the revision order of Ld. Pr. CIT-2, Kolkata under section 263 of the Income-tax Act, 1961 for AYs 2011-12 and 2012-13. The Tribunal noted that the Ld. Pr. CIT found fault with the assessment order regarding the assessee's claim for deduction under section 80IE, computation of tax liability under section 115JB, and payment of tax under section 115O. The Ld. Pr. CIT directed the Assessing Officer to conduct a fresh assessment after a detailed inquiry and providing the assessee with an opportunity to be heard. The Tribunal observed that the issues raised by the Ld. CIT had already been decided by the Ld. CIT(A) in an appellate order dated 20.07.2016. As per the explanation to section 263, the Tribunal held that the Ld. Pr. CIT lacked jurisdiction to interfere with matters that had merged with the Ld. CIT(A)'s order.

In the case of deduction under section 80IE, the Ld. CIT(A) held in favor of the assessee, stating that the AY 2011-12 was the 3rd year for the claim, not the 4th year as contended by the AO. The Ld. CIT(A) also addressed the computation of tax liability under section 115JB, ruling in favor of the assessee based on previous decisions for preceding AYs. Regarding payment of tax under section 115O, the Ld. CIT(A) relied on a judgment of the Calcutta High Court and the Supreme Court, directing the Ld. AO to impose tax only on 40% of the dividend, in line with the court rulings.

For AY 2012-13, the Tribunal found that the issues raised by the Ld. Pr. CIT had already been considered by the Ld. CIT(A) in the regular appeal filed by the assessee before the revision order was issued. Therefore, the Tribunal concluded that the Ld. Pr. CIT did not have the jurisdiction to interfere with matters already under appeal before the Ld. CIT(A). Consequently, the Tribunal allowed the appeals of the assessee and quashed the impugned orders of the Ld. Pr. CIT for both AYs 2011-12 and 2012-13.

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