Case Law Details
The Tata Power Company Limited Vs PCIT (ITAT Mumbai)
Conclusion: Any order of the subordinate authority which could have been considered as erroneous and prejudicial to the interest of revenue in allowing assessee’s claim of deduction under section 80IA, either due to lack of enquiry or otherwise, was the original assessment order passed under section 143(3) r.w.s. 144C and not the re-assessment order. PCIT had proceeded to revise the assessment order passed under section 143(3) r.w.s. 147 to get over the hurdle of limitation which was impermissible.
Held: CIT invoked his revisional powers by stating that the assessment order passed under section 143(3) r.w.s. 147 was erroneous and prejudicial to the interest of revenue since AO had not examined and disallowed the excess deduction claimed by assessee under section 80IA. It was held that a reading of the original assessment order would reveal that the issue relating to deduction claimed under section 80IA was a subject matter therein. In fact, the draft assessment order passed by AO on the issue of deduction claimed under section 80IA was disputed before DRP and after passing of the final assessment order, the issue relating to claim of deduction under section 80IA was now pending in appeal before the Tribunal. Therefore, any attempt by AO to deal with such issue in re-assessment proceedings would have amounted to review of the original assessment order, which was impermissible. Thus, the assessment order passed under section 143(3) r.w.s. 147 could not be considered as erroneous and prejudicial to the interest of revenue to subject it to proceeding under section 263. If, at all, any order of the subordinate authority which could have been considered as erroneous and prejudicial to the interest of revenue in allowing assessee’s claim of deduction under section 80IA, either due to lack of enquiry or otherwise, was the original assessment order passed under section 143(3) r.w.s. 144C and not the re-assessment order. Therefore, the period of limitation prescribed under section 263(2) would run from the original assessment order. Being conscious of the fact that the original assessment order could not be revised under section 263 due to bar of limitation, as provided under sub section (2) of section 263 PCIT, as it appeared, had proceeded to revise the assessment order passed under section 143(3) r.w.s. 147 to get over the hurdle of limitation. This was impermissible. Thus, the impugned order of PCIT revising the order passed under section 143(3) r.w.s. 147 was unsustainable.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
