TaxTMI 
TaxTMI 
2022 (3) TMI 1021
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....tation. (2) For that in absence of any allegation in the notice u/s. 263 dated 15.01.2021 to the effect that re-assessment order u/s. 143(30/147 dated 31.12.2018 is erroneous in so far as prejudicial to the interest of the revenue the notice itself is ab-initio void, illegal and without jurisdiction". 3. The issue raised in the Grounds No. 1 & 2 is that the order of Ld. PCIT is barred by limitation under the Act as the period of two years under section 263(1) of the Act is to be reckoned from the date of original assessment framed under section 143(3) dated 31.03.2016 and not from the dated reassessment order passed under section 143(3) read with section 147 of the Act dated 31.12.2018. 4. The facts in brief are that the assessee filed its return of income on 29.11.2012 declaring total income of Rs. 53.34 crores under the normal provisions of the Act and Rs. 455.10 crores under section 115JB as book profit. The case of the assessee was selected for scrutiny and assessment was framed under section 143(3) of the Act vide order dated 31.03.2016. Thereafter the case of the assessee was reopened under section 147 of the Act by issuing notice under section 148 of the Act by recording....
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....ies regarding the issue of commission and finalize the assessment in accordance with law after affording reasonable opportunity of hearing to the assessee. 6. The Ld. A.R. vehemently submitted before the Bench that the order passed by the Ld. PCIT by exercising his jurisdiction under section 263 of the Act is not in accordance with the provisions of the Act as the revisionary jurisdiction has been exercised beyond the period of limitation as prescribed in section 263(2) of the Act, which provides that no order shall be made under sub-section (1) of section 263 after expiry of two years from the end of financial year in which the order sought to be revised was passed and thus the order is hopelessly barred by limitation. The Ld. A.R. submitted that the assessment in this case was framed under section 143(3) vide order dated 31.03.2016 after raising various issues in the questionnaire issued by the Assessing Officer during the assessment proceedings which were duly replied and responded during the course of assessment proceedings by the assessee. The Ld. A.R. submitted that the act of the Ld. PCIT in setting aside the assessment framed under section 143(3) read with section 147 of t....
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....imitation, as the show-cause notice under section 263 of the Act was issued on 15.01.2021. In defence of his arguments, Ld. Sr. Counsel relied on the series of decisions, namely- (i) CIT vs. Alagendran Finance Limited (2007) 293 ITR 1 (SC); (ii) CIT vs. ICICI Bank Limited (2012) 343 ITR 74 (Bom.). The Ld. A.R. submitted that in both these decisions, the Hon'ble Courts have held that the two years period of limitation shall run from the end of financial year in which the original assessment was framed and not from the end of financial year in which the reassessment was framed when the issue on which the assessment was revised was not subject matter of reassessment proceedings. The Ld. A.R. also submitted that in view of this settled position of law, the revisionary proceeding as exercised by Ld. PCIT under section 263 of the Act and the consequent order may quashed as being barred by limitation. 7. Per contra, the Ld. D.R. relied heavily on the order of Ld. PCIT by submitting that no prejudice is going to be caused to the assessee if the assessment order is revised by the Assessing Officer as the assessee would be given reasonable and sufficient opportunity during the set ....
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....e AO in the original assessment proceedings and the reassessment proceedings. In the original assessment proceedings the AO has vast powers whereas in the reassessment proceedings the powers are limited though the AO has the power to assess any other item of income which is not subject matter of the reasons u/s. 148(2) of the Act which comes to notice during the course of proceedings but subject to the condition that the addition is made in respect of escaped income as recorded in the reasons u/s. 148(2) of the Act. We note that in assessment proceedings which culminated under section 143(3) order dated 31.03.2016 the AO did not examine this issue of commission payment. In the reopened assessment under section 147 read with section 148 of the Act as finalised vide order dated 31.12.2018, this issue did not come to the notice of the AO during the proceedings. 9. Considering the facts of the case vis a vis the and the provisions of section 263(2) of the Act and also the citations made by the Ld. Sr. Counsel before us, we are of the considered view that it is the original assessment order passed under section 143(3) of the Act which could be considered as erroneous and prejudicial to....
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....t form the subject matter of the reassessment, the limitation must necessarily begin to run from the date of order passed under section 143 by observing and holding as under:- "Held, dismissing the appeal, that neither in the first reassessment nor in the second reassessment was any issue raised or decided in respect of the deductions under section 36(1)(vii), (viia) and the foreign exchange rate difference. The order of the Commissioner under section 263(2) had not been passed with reference to any issue which had been decided either in the order of the first reassessment or in the order of second reassessment but sought to revise issues decided in the first order of assessment passed under section 143(3) on March 10, 1999, which continued to hold the field as regards the three issues in question. The order dated March 10, 1999, did not merge with the orders of reassessment in respect of issues which did not form the subject matter of the reassessment. Consequently, Explanation 3 to section 147 would not alter that position. Explanation 3 only enables the Assessing Officer, once an assessment is reopened, to assess or reassess the income in respect of any issue, even an issue in....