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2012 (6) TMI 289 - ITAT CHENNAIRevision under section 263 by CIT(A) - period of limitation – Held that:- CIT(A) has rightly reckoned the period of limitation from the date of passing of the income-escaping assessment order under section 143(3), read with section 147 - as per the provisions of section 263(1), where an original order is rectified by an order of rectification, it ceases to exist and a rectified order comes into existence. - After the date of rectification, there remains no original order in existence - the assessment was made for the first time u/s 143(3) r.w.s 147 and there was no occasion before that to scrutinize the return and section 263(2) makes it clear that order passed u/s 143(3) r.w.s 147 can be revised. So, it becomes amply clear that the limitation will start from the date of assessment made u/s 143(3) r.w.s 147 i.e 24.12.2008 in this case and not from the date of intimation as has been claimed by the assessee-company - the revision order passed by the Commissioner of Income-tax is within the period of limitation. Income taxable under section 28(iv) – amalgamation - treatment of sum transferred by the assessee to its General Reserve - Held that:- The amount of Rs. 2,899.68 lakhs transferred by the assessee to its General Reserve was not generated out of trading operations. The surplus in fact arose out of acquisition of capital assets. - It was a transaction in the capital segment. In fact, there is no surplus. It was only an accounting notion. It was necessarily to be reflected in the accounts so as to tally the balance sheet. - Even if the surplus is attributed to a capital transaction, there again section 47(vi) provides that any surplus arising in such cases of amalgamation cannot be brought to capital gains tax, as the act of amalgamation is not treated as 'transfer' for the purposes of section 45. - The sum of Rs. 2,899.68 lakhs is not in the nature of any benefit or perquisite and thus, not taxable u/s 28(iv) of the Income-tax Act, 1961.
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