TaxTMI 
TaxTMI 
2016 (4) TMI 961
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....r 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" simply mean passing of the order and keeping it in the file"? B. Whether the requirement of passing/making the order within the period of limitation means effectively passing/making the order so as to be beyond the control of the authority, for any possible change or modification therein"? C. Whether on the facts and circumstances of the case and in law, the Tribunal was right in law in holding that order under section 263 was passed on 20.3.2013 though the same was dispatched on 4.4.2013 i.e. after the limitation which expired on 31.3.2013? D. Whether on the facts and circumstances of the case, the ITAT was justified in law in upholding the action of the CIT under section 263 on the basis that the AO has allowed claim of assessee under section 80IB without making any enquiry or investigation without appreciating complete assessment record, the query letter Annexure A.6 and its reply Annexure A.7, order sheet entry Annexure A.11 and office note to assessment order Annexure A.12 and the material and evidences on record and the fact that AO had ....
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....pleted by the Assessing Officer under section 143 (3) of the Act on 29.10.2010, Annexure A.1. On 14.11.2012, notice was issued by the Commissioner of Income Tax, Ludhiana (CIT) under section 263 of the Act wherein it was observed that the assessee had been allowed deduction under section 80IB of the Act on various items. The appellant filed objections vide reply dated nil Annexure A.5 stating that the judgment in the case of M/s Friends Castings was not applicable to it since the assessment was made on 29.10.2010 when the impugned judgment was not available. On the basis of subsequent judgment, the assessment could not be reopened under section 263 of the Act in view of the judgment of this Court in CIT vs. Saluja Exim Limited, (2010) 329 ITR 603. On merits, it was submitted that even during the course of search, nothing was recovered to show that the appellant was engaged in any other business or activity except manufacturing. Therefore, the income as surrendered on account of writing back off of business sundry creditors having utilized for normal business activities of the appellant was from manufacturing business only and also the job work activities carried on by the appellant....
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....tion 263 of the Act in the case of the assessee was passed on 20.3.2013 which was required to be passed upto 31.3.2013. Thus, the order was within the period of limitation. There was no requirement to dispatch the order within the period of limitation itself. The relevant findings recorded by the Tribunal read thus:- "8. The learned counsel for the assessee submitted that assessment order was passed on 29.10.2010 and the order under section 263 has been passed on 20.3.2013. However, the impugned order was dispatched on 4.4.2013 and received by assessee on 6.4.2013. He has therefore submitted that revision order is barred by limitation. He has however admitted that the last date of passing of the revision order was 31.3.2013. 9. The learned DR contended that the only requirement of the law was to pass the revision order within two years which is passed by the learned Commissioner of Income Tax in this case. There is no requirement to dispatch the order within that period itself. 10. On consideration of the rival submissions, we are of the view, this ground of appeal of the assessee has no merit. Section 263(2) of the Act provides that no order shall be made under sub section (....
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....e Assessing Officer to pass the assessment order afresh by giving opportunity of hearing to the assessee. The conclusion of the Tribunal is quoted below:- "11. The learned counsel for the assessee submitted that assessee is eligible for deduction under section 80IB on surrendered income as well as on job work and Assessing Officer after making proper enquiry granted relief to the assessee at assessment stage. The learned counsel for the assessee has, however, not been able to place on record any query letter issued by the Assessing Officer with regard to deduction under section 80IB or any reply filed before Assessing Officer in this regard. The learned counsel for the assessee ultimately submitted that the directions may be issued to the learned Commissioner of Income Tax to consider the plea of the assessee on merit. On the other hand, learned DR submitted that Assessing Officer has not made any enquiry on both the issues and no income is derived form any business or industrial undertaking on which surrender was made as well as job income was shown. Therefore, when Assessing Officer failed to make enquiry on both the aspects, learned Commissioner of Income Tax was justified in ....
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....nvestigating or conducting any enquiry with regard to claim of deduction under section 80IB on surrendered income of Rs. 6 crore or on job charges. The learned counsel for the assessee has also shown inability to produce any reply filed before Assessing Officer of making claim of deduction under section 80IB on the surrendered income as well as on job charges by fulfilling conditions of Section 80IB. It would therefore reveal that Assessing Officer did not make any enquiry or investigation at assessment stage so as to qualify deduction under section 80IB of the Act to the assessee on surrendered income as well as on job charges. The accounts of the assessee revealed that assessee declared income of Rs. 6 crores as business advances written off, therefore, it could not be said to have any nexus with the industrial undertaking of the assessee. The surrendered income was therefore undisclosed income from other sources and assessee failed to establish that source of unaccounted income invested in advances which were written off had any nexus with the industrial undertaking of the assessee. The assessee during the course of survey as well as assessment proceedings has not filed any do....