2025 (3) TMI 1169

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....ch/2023. 2. The brief facts necessary for the disposal of this appeal are as follows: For the assessment year 2006-2007, the assessment was completed under Section 143 (3) read with Section 147 of the Income Tax Act, 1961 (for short, IT Act) on 24.11.2011. While so, the Commissioner of Income Tax invoked the suo moto revisional power under Section 263 of the IT Act on the issue that the assessing officer has not conducted proper enquiries with respect to the assessee's claim for set off, of carry forward depreciation while computing book profit under Section 115JB of the IT Act. Though the appellant preferred an objection to the proposal, the commissioner rejected the objection by order dated 3.3.2014 and held that the assessing....

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....as dismissed as not maintainable. Aggrieved by the dismissal of the appeal, the assessee has preferred this appeal raising the following questions of law. 1) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in dismissing the Appeal as not maintainable on the ground that the Appellant has not challenged the order of the Commissioner under Section 263 of the Act? 2) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the observations in the order of the Commissioner of Income Tax under Section 263 on the merits of the issue, with respect to calculating income under Section 115JB, is binding on the Assessing Officer? 3) W....

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....n the other hand, the learned Standing Counsel appearing for the revenue supported the findings of the tribunal and submitted that in the absence of any challenge to the order passed by the Commissioner of Income Tax revising the order of assessment, the consequential order is not open for challenge. 7. We have considered the rival submissions raised across the Bar and perused the order of the tribunal. 8. We find from the records that the order passed by the Commissioner of Appeals under Section 263 of the IT Act cannot be under any circumstances construed as a closed remand. While exercising the suo moto power of revision under Section 263 of the IT Act, the Commissioner had found that the order of assessment is erroneous and prejud....