9911796707
TMI Blog2013 (2) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax, Chennai-IV at Chennai, passed under section 263 of the Income-tax Act, 1961, dated 24-3-2011. 2. For the assessment year 2002-03, the assessment was completed under section 143(3) of the Act. The assessment order was taken in appeal before the Commissioner of Income tax( Appeals). Later on, the matter was taken before the Income tax Appellate Tribunal in second appeal. In the light of the order of the Tribunal dated 24-3-2008, the assessing authority passed an order to give effect to the orders of the Tribunal through his proceedings dated 3-7-2008. 3. The Commissioner of Income-tax, on perusal of the records, found that the assessing authority, while giving effect to the order of the Tribunal, has adopted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the assessing authority to give effect to the orders of the Tribunal is "any order" passed by an assessing authority, who is subordinate to the Commissioner of Income-tax. Therefore, the Commissioner of Income-tax invoked the powers under section 263 within the permissible limits of law. He has not exceeded jurisdiction. 7. Regarding the merits, it is quite evident that the assessing authority has adopted the net profit for further giving deduction by way of depreciation, which was already modified by the depreciation allowance as provided under the Companies Act. Therefore, the excess amount of depreciation allowance has been granted to the assessee. Likewise, the division of depreciation allowance also has not been done while c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by him. That point alone was adjusted in the assessment completed under section 143(3) read with section 147. The latter order survives for the verification of the Commissioner of Income-tax. Rather, the first order of assessment has been merged with the income-escaping assessment completed subsequently. When the Commissioner of Income-tax has the authority to examine the records of the second order, the entire matter of assessment is open before him. When that is the case, he can pass an order under section 263 with reference to any issue in the light of the verification of the income-escaping assessment order and the limitation period begins from the date of passing of such income-escaping assessment order. Therefore, it is to be seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rquisites in the nature of ESOP to the employees is an expenditure incurred in the course of carrying on of the business and it is within the legitimate right of the assessee to manage its relationship with the employees to the best of its interests and any expenditure incurred by the assessee company in that course should be treated as incurred for the business and entitled for deduction as expenditure in computing the taxable income. 13. We appreciate all these profound arguments advanced by the learned senior counsel appearing for the assessee. But these arguments have to be verified with the facts and details available on record. The Commissioner of Income-tax has not adjudicated the issue himself but set aside the matter to the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
