TaxTMI 
TaxTMI 
2018 (7) TMI 1556
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....t assessment order was issued u/s 144C of the I.T.Act disallowing the deduction u/s 10B of the I.T.Act and interest expenses on funds advanced. In response to the draft assessment order, the assessee filed submissions before the Assessing Officer intimating its inability to file objections before the Dispute Resolution Panel (DRP) in the absence of transfer pricing adjustment in the draft assessment order. The final assessment order was passed on 26.04.2013. The assessee, however, claims that the final assessment order was not received by it. Thereafter reassessment notice was issued and orders u/s 143(3) r.w.s. 147 of the I.T.Act was passed on 27.03.2015. The Assessing Officer in the reassessment completed, disallowed the amount claimed by the assessee, both u/s 10A and 10B of the I.T.Act. Against the reassessment order, the assessee-company had filed appeal before the CIT(A). 3.2 On 09.10.2016, the Commissioner of Income-tax initiated proceedings u./s 263 of the I.T.Act, proposing to revise the reassessment order u/s 143(3) r.w.s. 147 of the I.T.Act. Against the notice issued by the CIT to revise the reassessment order, the assessee filed objections on 19.12.2016. It was submi....
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....ed below for reference. Particulars Date of intimation /order Last date by which the order should have been passed under section 263(2) Intimation under section 143(1) 22 January 2011 31 March 2013 Order under section 143(3) (not received by the Appellant) 26 April 2013 31 March 2016 Order under section 143(3) read with section 147 17 March 2015 Since the subject matter of revision proceedings under section 263 is not covered under the reassessment order, the reassessment order cannot be considered for time limit purposes under section 263(2) of the Act. Ground No.2 - Without prejudice, revision proceedings have been initiated on account of issues that are neither erroneous nor prejudicial to the interests of revenue 2.1 The learned CIT has erred in not considering the fact that the issues relied on for initiating the revision proceedings neither appears to be a mistake in law nor prejudicial to the interests of revenue. The learned CIT has erred in initiating the revision proceedings under section 263 without taking into consideration the settled position of law that such proceedings can be invoked only if the order passed by t....
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....d 02 November 2016 and was also upheld by the jurisdictional Cochin Tribunal in the case of Sun Tee Business Solutions Private Limited (IT(TP)A 01/Coch/2013). Ground No.4 - Relief 4.1 The Appellant prays that directions be given to grant all such relief arising from the above grounds and also all relief consequential thereto; and 4.2 The Appellant craves leave to add to or alter, by deletion, substitution, modification or otherwise, the above grounds of appeal, either before or during the hearing of the appeal." 4. The learned AR had filed brief written submissions and two paper books enclosing the case laws on the subject, the intimation issued u/s 143(1), reassessment order, audited financial statement of the assessee-company etc. The learned AR submitted that order passed u/s 263 of the I.T.Act, was barred by limitation. It was submitted that the said issue is covered in favour of the assessee by the judgment of the Hon'ble Apex Court in the case of CIT v. Alagendran Finance Ltd. [(2007) 293 ITR 1 (SC)] and the judgment of the Hon'ble Bombay High Court in the case of CIT v. ICICI Bank Ltd. [(2012) 349 ITR 482 (Bom.)] . The learned Departmental Repre....
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....al Inc: Rs.2,17,71,768 Total Rs.11,95,85,889 Since the receipt forms part of the total income and therefore claim of deduction u/s 10B of the IT Act is not found correct as the income is not derived from the eligible business and accordingly, the same is ought to have shown as income from other sources and taxed accordingly. Since there is failure on the part of the assessee to disclose true and correct income, I have reason to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the IT Act. Therefore, the assessment for the AY 2009-10 is reopened u/s 147 of the IT Act." 5.2 The reopening of assessment u/s 143(3) r.w.s. 147 of the IT Act was completed vide order dated 17.03.2015. In the reassessment completed, the exemption claimed u/s 10B / 10A of the I.T.Act was disallowed and also interest expenditure for the reason that there was diversion of funds not for the purpose of business. The CIT had invoked the revisionary jurisdiction u/s 263 for the following reasons:- "(a) As per clause 21(i)(B) of the Tax Audit Report, service tax of Rs. 2,74,43,077/- is seen as 'not paid' to the Government account....
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....1) and the foreign exchange rate difference was allowed. A notice was issued under section 148 on 21-10-1999 following which the first reassessment was carried out on 22-2-2000 for reworking a deduction under section 80M. An appeal against the order under section 143(3) was decided by the Commissioner (Appeals) on 28-3-2001. Thereafter a second notice was issued under section 148 on 28-3-2001. Following that on 26-3-2002 a second order of reassessment was passed for reworking of the deduction under section 36(1)(viii). This order was set aside by the Tribunal on 27-8-2010 and an appeal was pending. On 28-3-2003 an order was passed by the Commissioner under section 263 for disallowance under section 36(1)(vii), (viia) and in respect of foreign exchange rate difference. On further appeal, Tribunal held that order of the Commissioner dated 28-3-2003 passed under section 263 setting aside the assessment order dated 26-3-2002 passed under section 143 read with section 147 by the Assessing Officer was barred by limitation under section 263(2). 5.5 On appeal filed by the Revenue u/s 260A of the I.T.Act, the Hon'ble Bombay High Court held as under:- "Sub-section (2) of section ....