2021 (9) TMI 920

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.... return of income for assessment year 2013-14 on 27.09.2013 admitting total income of Rs. 5,89,30,600/-. The assessment for the impugned assessment year has been completed u/s.143(3) of the Income Tax Act, 1961 on 28.03.2016 and determined total income at Rs. 6,17,53,051/-, after allowing deduction of Rs. 7,63,323/- u/s.80IA of the Income Tax Act, 1961. Thereafter, a search action u/s.132 of the Income Tax Act, 1961 was conducted in the case of Seyadu group of concerns, Tirunelveli on 28.06.2017. Consequent to search, assessment has been completed u/s.143(3) r.w.s 153C of the Income Tax Act, 1961 on 24.12.2019 and determined total income at Rs. 8,39,57,050/-, after making additions towards unexplained cash credit u/s.68 of the Act for Rs. 2....

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....se of M/s. Skyline Builders Ltd. Vs. CIT (2019) 105 taxmann.com 207. 4. The learned PCIT, after considering relevant submissions of the assessee and also taken note of various facts, including assessment order passed u/s.143(3) dated 28.03.2016 and subsequent assessment order pursuant to search proceedings passed u/s.143(3) r.w.s 153C of the Act dated 24.12.2019, observed that proposed revision of assessment order is taken up for revising assessment order dated 24.12.2019 passed u/s.143(3) r.w.s.153C of the Act, but not assessment order passed u/s.143(3) dated 28.03.2016 and thus, proposed revision proceedings is well within prescribed time limit provided u/s.263 of the Income Tax Act, 1961. The learned PCIT also discussed issue in light o....

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.....80IA was not subject matter of verification during the reassessment proceedings passed pursuant to search action u/s.143(3) r.w.s. 153C of the Income Tax Act, 1961. The learned A.R referring to the provisions of section 263 of the Act, submitted that as per provisions any order can be revised within two years from the end of financial year in which original assessment order was passed. In this case, original assessment order was passed on 28.03.2016 and the issue of deduction u/s.80IA was examined by the Assessing Officer. Further, said issue was neither subject matter of reassessment nor was examined by the Assessing Officer and hence, question of revision of assessment order passed u/s.143(3) r.w.s 153C of the Act, dated 24.12.2019 does ....

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....o search u/s.143(3) r.w.s 153A/153C only persists and hence, if such assessment order date is considered, revision order passed by learned PCIT is well within two years from the end of relevant financial year and hence, there is no merit in the arguments of the assessee that revision order passed by learned PCIT is barred by limitation. 7. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The provisions of section 263 of the Income Tax Act, 1961 empowers Pr.CIT / CIT to revise assessment order passed by the Assessing Officer, if PCIT satisfies that assessment order passed by the Assessing Officer is erroneous insofar as it is prejudicial to the interests of revenue. Sub-s....

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....aimed u/s.80IA of the Income Tax Act, 1961. The proposed revision proceedings was taken up to examine issue of deduction claimed u/s.80IA of the Act, and said issue was first time examined in original assessment proceedings u/s.143(3) of the Act on 28.03.2016. It is a well settled principles of law by various courts that PCIT/CIT can exercise his revisional powers on the issue which was subject matter of assessment proceedings whether or not said issue was discussed by the Assessing Officer. In this case, the learned PCIT has taken up revision proceedings on the issue of deduction claimed u/s.80IA of the Act, and said issue was not a subject matter of assessment in pursuant to search action u/s.143(3) r.w.s. 153C of the Income Tax Act, 1961....