Shiv Vegpro Pvt. Ltd. Vs PCIT (ITAT Jaipur)
The Income Tax Appellate Tribunal (ITAT) Jaipur has ruled in favor of the assessee, Shiv Vegpro Pvt. Ltd., by setting aside the Principal Commissioner of Income Tax (PCIT)’s order under Section 263 of the Income Tax Act, 1961, on grounds of limitation. The case centered around whether the limitation period for invoking Section 263 should be calculated from the date of the original assessment order or the reassessment order.
Shiv Vegpro Pvt. Ltd. had initially filed its return of income on September 6, 2017, and an intimation under Section 143(1) was issued on October 16, 2018. Subsequently, the assessment was reopened under Section 148, with the reassessment order issued on April 15, 2021. The PCIT sought to exercise jurisdiction under Section 263 based on issues covered in the original assessment order, issuing notice on February 14, 2023. The assessee challenged the PCIT’s action as being beyond the permissible limitation period.
The Tribunal relied on the Rajasthan High Court’s decision in Chambal Fertilisers and Chemicals Ltd. vs. PCIT (170 taxmann.com 543), which clarified that the limitation period for invoking Section 263 begins from the date of the original assessment order if the issues under review do not pertain to the reassessment. This principle was further upheld by the Supreme Court in CIT vs. Alagendran Finance Ltd. (2007) and reiterated in subsequent rulings.
