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2024 (2) TMI 694 - AT - Income TaxRevision u/s 263 - period of limitation - HELD THAT - Assessment Order in this case has been passed on 13.12.2017 and the order u/s. 263 by the ld. PCIT has been passed on 18.03.2021 Hence, keeping in view the provisions of Sub-Section 2 of Section 263, wherein held that no order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. Thus we hold that the order passed by the ld. PCIT is barred by limitation. Appeal of the assessee is allowed.
Issues involved:
The issues involved in this case are u/s 263 of the Income Tax Act, jurisdiction of the Principal Commissioner, and the period of limitation for passing orders. Issue 1: Jurisdiction u/s 263 of the Income Tax Act: The appeal was filed by the assessee against the order of the ld. PCIT, Dehradun dated 18.03.2021. The assessee contended that the ld. Pr. CIT erred in assuming powers u/s 263, holding the assessment order dated 13.12.2017 as erroneous and prejudicial to the interest of the revenue without conducting necessary inquiries. The appellant argued that the assumption of power by the Ld. Pr. CIT was improper due to the absence of minimal inquiry to support his findings. The appellant also challenged the jurisdiction of the ld. Pr.CIT under section 263, stating that the twin conditions of the order being both erroneous and prejudicial to the revenue were not met. Issue 2: Period of Limitation for Passing Orders: The Assessment Order was passed on 13.12.2017, and the order u/s. 263 by the ld. PCIT was passed on 18.03.2021. The appellant argued that the order passed u/s 263 was beyond the period of limitation prescribed u/s 263(2) of the Income Tax Act. The Tribunal held that the order by the ld. PCIT was indeed barred by limitation as per the provisions of Sub-Section 2 of Section 263. In conclusion, the Appellate Tribunal ITAT Dehradun allowed the appeal of the assessee, holding that the order passed by the ld. PCIT was barred by limitation. The Tribunal emphasized the importance of adhering to the prescribed period of limitation for passing orders u/s 263 of the Income Tax Act.
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