Jainsons Agrochem Industries Vs PCIT (Rajasthan High Court)
Rajasthan High Court held that since reassessment order is distinct and different, the period of limitation for exercising powers u/s. 263 of the Income Tax Act would be the date of original assessment order. Thus, entire proceedings barred by limitation.
Facts- The petitioner filed his income tax return declaring a total income of Rs.4,98,43,110/-. The petitioner has also reflected a Dividend income of Rs.21,58,735/- received from investment in Mutual Funds of UTI Ltd. and tax paid on the short term capital gain.
Upon the scrutiny of the petitioner’s income tax return, a notice was issued by the respondents and the assessment u/s. 143(3) of the Income Tax Act, 1961 was done by the concerned authority, while passing a detailed assessment order dated 08.01.2016. A notice was issued to the petitioner u/s. 154 proposing to rectify the said assessment order dated 08.01.2016 pertaining to the earned Dividend income and expenditure u/s. 14A r.w.r 8D of the Income Tax (Fifth Amendment) Rules, 2008.
Thereafter, the petitioner was issued a re-assessment notice u/s. 147 on the ground that there was a short fall of an amount of Rs.2,32,330/- in job charges account. Accordingly, the reassessment order was passed on 25.03.2022.
