2012 (9) TMI 1155 - AT - Income Tax

Summary

Issues involved:
The issue involved in this case is regarding the rectification of an order by the Appellate Tribunal ITAT COCHIN u/s 254(2) of the Income-tax Act, concerning the applicability of limitation u/s 263 for deduction u/s 80IB for the assessment years 2002-03 and 2003-04.

For the assessment year 2002-03:
The taxpayer contended that the Commissioner's intervention u/s 263 was time-barred as it was initiated after the prescribed limitation period. The Tribunal found that the deduction u/s 80IB was already part of the original assessment, making the Commissioner's action unsustainable. The Tribunal rectified the order to reflect this finding, emphasizing that once an assessment is finalized, it cannot be revised beyond the limitation period.

For the assessment year 2003-04:
The Tribunal inadvertently overlooked the issue of limitation raised by the taxpayer and disposed of the appeal based on the lack of separate books of account. However, upon rectification, the Tribunal acknowledged the error and allowed the taxpayer's appeal for the assessment year 2003-04, aligning it with the decision made for the assessment year 2002-03. The Tribunal emphasized that the plea of limitation need not be explicitly raised in the original grounds and can be considered by the Tribunal based on legal principles.

Conclusion:
The Tribunal rectified the order by deleting certain paragraphs and inserting new ones to address the issue of limitation u/s 263 for deduction u/s 80IB. The rectification clarified that the Commissioner's intervention was not sustainable beyond the limitation period, as the deduction was already part of the original assessment. The Tribunal allowed the taxpayer's appeal for the assessment year 2003-04, emphasizing that the plea of limitation can be considered by the Tribunal even if not explicitly raised in the original grounds.