Manjoo And Company Vs ACIT (Kerala High Court)
Kerala High Court held that passing of consequential order by the Assessing Authority beyond the terms of remand by Commissioner under Section 263 of the Income Tax Act is wholly unacceptable. Accordingly, order set aside.
Facts- The appellant is a dealer in lottery tickets. The assessment of the appellant for the assessment year 2006-07 was completed u/s. 143(3) of the I.T. Act on 29.12.2008. Thereafter, the Commissioner of Income Tax initiated proceedings u/s. 263 of the I.T. Act by issuing a notice dated 07.12.2010 proposing to revise the assessment order. Notably, the Commissioner of Income Tax thereupon considered the explanations offered by the assessee and passed an order dated 09.03.2011 u/s. 263 of the I.T. Act, accepting the explanation offered by the assessee in respect of two issues but rejecting the explanation offered by the assessee in respect of the other two issues and remanding the said two issues to the assessing authority for a fresh adjudication, by taking note of the observations of the Commissioner in the order passed u/s. 263 of the I.T. Act.
It would appear that while passing the consequential order based on the order passed by the Commissioner u/s. 263 of the I.T. Act, the Assessing Authority considered other issues and expanded the scope of the original assessment order passed by him u/s. 143(3) of the I.T. Act.
