2022 (12) TMI 435

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....ct, 1961. 2. The ld. PCIT in this case exercising his revision jurisdiction under section 263 of the Income Tax Act has set aside the assessment order holding the same as erroneous and prejudicial to the interest of revenue with a direction for denovo assessment after making necessary verification and enquiries for the following reasons:- "(1) That the AO has allowed the business expenditure of Rs.3.30 crores, debited in the Profit & Loss Account, towards buy-back of shares from the two shareholders, namely Mr. Varun Rajgarhia and Mr. Vardhan Rajgarhia. However, as per section 115QA(1) of the Act, any amount of distributed income by the domestic company on buy-back of shares (not being shares listed on a recognised stock exchange) from a....

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....ed; That the provisions of section 115QA of the Income Tax Act are applicable to the buy-back of shares under section 77A of the Companies Act, 1956 (as then existed) and since in the case of the assessee, the shares were bought back under specific orders passed by the Company Law Board Bench under section 402 of the Companies Act, 1956, therefore, the aforesaid provisions of section 115QA of the Income Tax Act were not applicable in the case of the assessee; That DIN Number was not mentioned on the notice issued by the PCIT under section 263 of the Income Tax Act. That the PCIT has not mentioned the specific clause of Explanation to Section 263 as amended by the Finance Act, 2015 in the notice issued under section 263 of the Income Tax Act....

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....rroneous in so far as it is prejudicial to the interests of the revenue. However, subsection (2) to section 263 provides that no order shall be made under 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. 5.1. In the case in hand, the assessment order under section 143(3) was passed on 28.12.2017 and the ld. PCIT could have exercised his revision jurisdiction by 31.03.2019. However, in this case, the impugned order of the ld. PCIT under section 263 of the Act is dated 10.06.2020, which is barred by limitation in respect of the assessment order dated 28.12.2017. However, a perusal of the show-cause notice issued by the ld. PCIT under section 263 of the Income....