2023 (3) TMI 357

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....s time barred, however, in view of the decision of the Hon'ble Supreme Court in the case of Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020, the period of filing appeal during the COVID-19 pandemic is to be excluded for the purpose of counting the limitation period. In view of this, the appeal is treated as filed within the limitation period. 3. The assessee is an individual and return of income for the assessment year under consideration was filed by him on 27.11.2017 by declaring a total income of Rs. 95,29,520/-. In the assessment completed u/s 143(3) of the Act vide an order dated 16.12.2019, the total income of the assessee was determined by the assessing officer at Rs. 95,29,520/-. The records of the said assessme....

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.... of rental income marked the order erroneous in so far as it is prejudicial to the interests of the revenue. The AO should have placed the entire rental income under the head income from house property' and should have allowed only standard deduction u/s 24(a) of the Act amounting to 30% of Gross Annual Value. Failure to do so has rendered the assessment erroneous and failure to bring the apparent undisclosed income to the ambit of taxation has rendered the assessment prejudicial to the interest of revenue. 4. The ld. PCIT accordingly issued a notice u/s 263 of the Act to the assessee on 15.12.2021 and 02.03.2022 respectively pointing out the above error and seeking explanation from the assessee as to why the assessment order passed ....

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....e assessment order u/s 143(3) of the Act passed on 16.12.2019 is being set aside and restored back to the file of assessing officer u/s 263 so as to frame a fresh assessment by inter alia looking into the issues analyzed at paragraphs discussed above. Needless to add that the AO shall provide a reasonable opportunity of being heard to the assessee before finalizing the assessment." 5. Aggrieved by the order of the ld. PCIT passed u/s 263 of the Act, assessee preferred an appeal before the Tribunal. 6. The assessee has raised multiple grounds of appeal before this Tribunal. However, the effective ground is here to decide regarding initiating proceedings u/s 263 of the Act by which ld. PCIT setting aside the regular assessment made u/s ....