The Tax Publishers2021 TaxPub(DT) 0133 (Mum-Trib)

INCOME TAX ACT, 1961

Section 263

AO came to conclusion based on information available and submissions made before him at the time of assessment and he could not be expected to appreciate future event and to pass assessment order based on order of ITCS framed on a later date. Further, order of AO was subject-matter of appeal before CIT(A) and order of CIT(A) dated 21-9-2018 was never challenged by department, therefore, it reached its finality. Therefore, Pr. CIT could not review the same issue under section 263 and, therefore, order passed by Pr. CIT under section 263 was quashed.

Revision under section 63 - Erroneous and prejudicial order - Pr. CIT invoked jurisdiction based on subsequent order passed by ITSC - Also, assessment order having remained subject-matter of appeal before CIT(A)

CIT based on order of Settlement Commission dt. 26-6-2018 invoked jurisdiction under section 263 and treated order passed by AO under section 143(3) dt. 11-1-2017 as erroneous and prejudicial to the interest of revenue. Held: AO came to conclusion based on information available and submissions made before him at the time of assessment and he could not be expected to appreciate future event and to pass assessment order based on order of ITCS framed on a later date. Further, order of AO was subject-matter of appeal before CIT(A) and order of CIT(A) dated 21-9-2018 was never challenged by department, therefore, it reached its finality. Therefore, Pr. CIT could not review the same issue under section 263 and, therefore, order passed by Pr.CIT under section 263 was quashed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15 to 2016-17



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