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2021 (12) TMI 767 - BOMBAY HIGH COURTRevision u/s 263 - As per CIT assessee’s claim for deduction under Section 80IB ought to have been rejected by the Assessment Officer but the same had been allowed - merger of order of CIT with tribunal - Consequently levy of concealment penalty under Section 271(1)(c) - HELD THAT:- AO in proceedings under Section 143(3) of the said Act was pleased to disallow the amount that was claimed towards recovery of amount written off in the earlier year as well as amount being towards receipt of commission disallowed these deductions under Section 80IA of the said Act. This order was challenged by the assessee before the Commissioner of Income Tax (Appeals) and on 31/01/2007 the aforesaid two deductions that were disallowed by the AO came to be permitted. A finding was recorded that the deduction as claimed by the assessee under Section 80IA/80IB was in accordance with law and was hence granted. This appellate order was challenged by the Revenue before the Tribunal. In the judgment dated 29/10/2007 the Tribunal subsequently considered the aforesaid two heads of disallowances and proceeded to dismiss the appeal preferred by the Revenue on merits. It was thus clear from the aforesaid sequence of events that the order passed by the Commissioner of Income Tax (Appeals) dated 31/01/2007 merged in the order passed by the Tribunal on 29/10/2007 and attained finality. Thus as the order of the Commissioner Income Tax (Appeals) having merged with the order of the Tribunal, there was no scope for the Commissioner of Income Tax to initiate proceedings under Section 263 - As on merger of the order passed by the Commissioner with that passed by the Tribunal, the jurisdiction under Section 263 (1)(c) of the said Act could not have been invoked is settled in view of judgment of this Court in Slum Rehabilitation Authority[2019 (4) TMI 64 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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