Consequential reassessment based on an unchallenged revision order cannot be separately challenged; section 115JB grounds fell outside the appeal.

A consequential reassessment framed only to give effect to an unchallenged section 263 revision order could not be independently impeached, because the reassessment rested on a final and unassailed foundation. The ITAT Cochin held that the assessee could not challenge the resulting assessment without first questioning the revision order itself. Grounds relating to computation of book profit under section 115JB were treated as outside the scope of the appeal in these circumstances, and the challenge to the consequential assessment was held not maintainable.

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Issues: Whether the assessee could challenge the consequential reassessment framed in pursuance of an unchallenged revision order under section 263, and whether the grounds against computation of book profit under section 115JB survived in the present appeal.

Analysis: The assessment proceedings in dispute originated from a revision order under section 263 of the Income-tax Act, 1961, which had not been assailed by the assessee. The subsequent assessment was framed only in compliance with that revision order. In these circumstances, the challenge to the consequential assessment could not succeed unless the revision order itself was questioned, since the foundation of the reassessment had attained finality. The objection regarding computation of book profit under section 115JB was therefore held to be outside the scope of the present appeal.

Conclusion: The assessee's challenge to the consequential assessment was not maintainable and the appeal failed.

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