Case Law Details
CIT Vs Indian Overseas Bank (Madras High Court)
The question as to whether the date, on which the order under Section 147 of the Act was passed should be reckoned as the starting point of limitation, considering the facts and circumstances of the case, has been dealt with by several decisions of the Hon’ble Supreme Court and the earliest of such decisions is in the case of CIT Vs. Alagendran Finance Limited [reported in (2007) 293 ITR 1] wherein it was held that in respect of an issue, which was not subject matter of reassessment, limitation under Section 263(2) of the Act would run from the date of original assessment and that revisional proceedings initiated in respect of such issue beyond the period of two years from the date of original assessment were barred by limitation.
The reasons for reopening under Section 147 of the Act were only two and the issue, on which, the CIT sent the notice under Section 263 of the Act was pertaining to of business loss of Rs.72.75 Crores, which was not one of the issues in the re-assessment proceedings, but was an issue, which was raised by the Assessing Officer in the original assessment under Section 143(3) of the Act, in which, a show case notice was issued, the assessee submitted their explanation and thereafter, the assessment was completed.
As pointed out earlier, the reasons for reopening under Section 147 of the Act were only two and the issue, on which, the CIT sent the notice under Section 263 of the Act was pertaining to of business loss of Rs.72.75 Crores, which was not one of the issues in the re-assessment proceedings, but was an issue, which was raised by the Assessing Officer in the original assessment under Section 143(3) of the Act, in which, a show case notice was issued, the assessee submitted their explanation and thereafter, the assessment was completed.
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