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2011 (6) TMI 12 - HC - Income TaxRevision of orders - Once the taxability under the seized documents have been considered by CIT(A), the CIT u/s 263 of the Act cannot seek to consider the taxability under the very same documents once again - The Tribunal has recorded the fact that the two documents cannot be read independent of each other - The Tribunal has recorded a fact that once the taxability under both the documents have been considered by the assessing officer and also by the CIT(A), it is not open to the CIT to invoke the jurisdiction u/s 263 of the Act and direct the assessing officer to consider the taxability under those two documents once again - Hence,no fault can be found with the decision of the Tribunal in setting aside the order of CIT under Section 263 of the Act.
Issues:
1. Justification of ITAT in setting aside CIT's order under Section 263 of the I.T. Act. Analysis: The judgment in question revolves around the issue of whether the ITAT was justified in setting aside the order passed by the CIT under Section 263 of the Income Tax Act. The case involved an addition of Rs.90 lakhs as undisclosed income in the block assessment order based on documents seized from a particular individual's premises. The CIT had confirmed this addition, but on appeal, the ITAT deleted the addition made by the assessing officer. The revenue challenged this decision by filing an appeal under Section 260A of the Income Tax Act. Concurrently, the CIT had passed an order invoking jurisdiction under Section 263, directing the assessing officer to consider the tax implications of specific seized documents. The ITAT set aside the CIT's order, emphasizing that the assessing officer and CIT(A) had already considered the taxability under the documents in question. The Tribunal found that the taxability under the two documents had been duly examined, and thus, the CIT could not reevaluate the same taxability under Section 263. The High Court concurred with the Tribunal's decision, stating that no fault could be found with the Tribunal's action in setting aside the CIT's order under Section 263. In conclusion, the High Court dismissed the appeal, finding no merit in challenging the decision of the ITAT to set aside the CIT's order under Section 263. The judgment highlights the importance of proper consideration of tax implications by the assessing officer and CIT(A) and restricts the CIT's ability to reevaluate taxability under seized documents already examined in the assessment process.
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