ITAT held that revisionary proceedings under Section 263 cannot...

ITAT held that revisionary proceedings under Section 263 cannot be initiated for matters already considered and decided in appeal by CIT(A). In this case, the alleged bogus share capital was deemed genuine by CIT(A), thus precluding further revisional action. Relying on precedent from Bombay HC in Slum Rehabilitation Authority, the Tribunal applied the doctrine of merger, which prevents reassessment of issues already adjudicated in appellate proceedings. The PCIT's attempt to reopen the assessment was deemed improper, as the original assessment order had merged with CIT(A)'s order. Consequently, the assessee's appeal was allowed, effectively nullifying the revisionary proceedings.

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