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TMI Blog2013 (4) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... e said decision at all. Obviously, the facts arising in these cases are not similar to the facts based on which we rendered our judgment in Catholic Syrian Bank Ltd. v. CIT [2009 (8) TMI 750 - KERALA HIGH COURT] because in all these cases, assessment involved remained concluded and the powers of the Commissioner to suo motu order revision of assessment under Section 263 was considered with specific reference to the proviso to Section 14A, which is part of the statute. The proviso is not procedural but guarantees vested rights of parties against reopening concluded assessments. So far as concluded assessments are concerned, the proviso makes it clear that the assessee should not be subjected to disallowance either by reopening assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowable deduction. Even though the main provision of Section 14A is given retrospectivity the proviso imposed a prohibition against the Assessing Officer from revising a concluded assessment either under Section 147 or under Section 154 for making disallowance and for raising demand of tax or for demanding excess tax refunded. For easy reference Section 14A with the proviso is extracted hereunder. "Section 14A. Expenditure incurred in relation to income not includible in total income. (1) For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act. ( Provided th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47 or by rectifying assessment under Section 154. However, since the proviso to Section 14A does not expressly bar the Commissioner from invoking suomotu revisional powers under Section 263 of the Act, in exercise of such powers the Commissioner set aside the assessments and directed reassessment for making disallowances for the past years. When the matter reached the Tribunal, the Tribunal allowed assessee's claim by holding that disallowance cannot be made by reopening of concluded assessments in exercise of powers conferred under Section 263 of the Act by the Commissioner. It is against these orders, the matter reached this Court in appeals. 2. It may be noticed from the judgments under Review that the above issue raised in all the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under Section 263 issued notice to the assessee and directed revision of assessment for the purpose of making disallowance under Section 14A of the Act. In this context, we held that when assessment stands set aside and remanded for reconsideration by the assessing authority, such assessment cannot be treated as a concluded assessment and so much so, the Circular referred to therein does not bar revision of assessment by the Commissioner under Section 263 of the Act for the purpose of making disallowance under Section 14A. In fact, the scope of the proviso to Section 14A was not considered in the said decision at all. Obviously, the facts arising in these cases are not similar to the facts based on which we rendered our judgment in the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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