AO cannot Review his Own Order by invoking Sec 147 of Income Tax Act

DCIT Vs. M/s. ABCI Infrastructure Pvt. Ltd. (ITAT Kolkata)

AO had the knowledge of the assessee taking over the proprietary concern on 01.04.2002 i.e. running business of M/s. Anupam Bricks and Concrete Industries a proprietorship firm of Shri Budhmal Baid, Managing Director of the company in lieu of which the company had issued shares at a premium and the fact that by this process, the assessee acquired the assets including a Hot Mix plant. This fact was in the knowledge of the AO as well as he has considered this fact elaborately as reproduced above in his original assessment order, therefore, right or wrong, the decision taken by him cannot be revisited or reviewed by the AO invoking Sec. 147 of the Act because the AO does not have the power to review his own order. Relying upon the decision of Honorable Supreme Court in the case of Kelvinator of India Ltd. (supra), we do not find any legal infirmity in the order passed by the Ld. CIT(A) and hence, the same is hereby upheld. Appeal of revenue is dismissed.

FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-

This appeal filed by the revenue is against the order of Ld. CIT(A)-VIII, Kolkata, dated 18.01.2013 for AY 2006-07.

2. The main grievance of the revenue is against the action of the Ld. CIT(A) in quashing the reopening of the assessment u/s. 147 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).

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