2025 (7) TMI 453

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....that the order of the Commissioner of Income Tax under Section 263 is time barred and not in accordance with the provisions of the Income Tax Act? 2. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that 2 years from the end of the relevant financial year as per Section 263(2) of the Income Tax Act is to be considered from the date of original assessment and not from the date of reassessment ? 3. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in narrowing scope of Section 263 and powers of the Commissioner under that Section when the assessment was found to be erroneous and prejudicial to the interests of the ....

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.... 31.08.2006. (f) The Tribunal accepted the submissions of the assessee and set aside the order passed under Section 263 of the Act. It is against this order, Revenue is on appeal. 3. Mr.Mahalingam, learned standing counsel for the appellant/Revenue, submitted that the order passed by the appellant is within the statutory period of two years, as the said period has to be reckoned from the date of the reassessment order passed under Section 143(3) read with Section 147 of the Act, i.e. 30.12.2009 and not from the date of the original assessment order, i.e., 31.08.2006. 4.Mr.Jayakumar, learned senior counsel for the respondent/assessee, per contra, submitted that appellant had sought to revise the assessment order by holding tha....

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....of the Act. The order passed under 263(1) of the Act is with reference to an issue which is covered by the original assessment order and not with regard to the issue in the reassessment. 6. Hence, in our considered view, the limitation of two years prescribed under Section 263(2) of the Act has to be reckoned from the date of the original assessment order under Section 143(3) of the Act, which is 31.08.2006. In fact, the Bombay High Court in CIT vs. ICICI Bank [(2012) 343 ITR 74], had dealt with an identical issue and held as follows: "Sub-section (2) of Section 263 stipulates a period of limitation of two years within which an order under sub-section (1) has to be passed. Under sub-section (2) no order under Section 263(1)can b....