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TMI Blog2018 (5) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 is neither erroneous nor prejudicial to the interest of the revenue. Therefore, on this count, the order passed by the Ld. Commissioner u/s 263 of the Act dated 22.3.2013 is quashed. Period of limitation - Held that:- In this case, the assessing officer passed an order u/s 143(3) of the Act on 31.12.2009. If at all, the Ld.Commissioner wanted to exercise power u/s 263 of the Act, he has to issue a notice on or before 31.12.2011. In this case, he has issued notice on 04.03.2013 and the order was passed on 22.3.2013, which is time barred. Therefore, on this count, the order passed by the Ld. Commissioner cannot survive - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the A.O. cannot be revised on the ground that the A.O. while passing the order u/s 143(3) r.w.s. 147 of the Act has not considered (i) Bonus/Exgratia of ₹ 15,35,863/- (ii) interest on share capital of ₹ 72,73,357/- (iii) leave encashment fund ₹ 25,23,857/- and after considering the explanation given by the assessee, the Commissioner of Income Tax has passed an order directing the A.O. to redo the assessment by an order dated 22.3.2013. 4. On being aggrieved, the assessee carried matter in appeal before the Tribunal. The Ld. Counsel for the assessee has submitted that the assessment was reopened on the ground that the gratuity contribution was not offered for taxation. The assessee offered his income for ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,50,000/- towards the contribution to the gratuity and the A.O. has accepted the same and assessment is completed on 31.12.2010 on total income of ₹ 1,74,61,890/-. 7. Subsequently, the Ld. Commissioner has issued a show cause notice on 14.3.2013 on the ground that the A.O. while passing the order u/s 143(3) of the Act has committed certain commissions and omissions and the order is erroneous, therefore, it has to be revised u/s 263 of the Act. We find that the A.O. has issued a show cause notice u/s 148 of the Act on the ground that there is an escapement of an amount of ₹ 7,50,000/- towards the gratuity payment and for that assessment is reopened, the assessee has offered the same amount for taxation and accordingly assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld.Commissioner wanted to exercise power u/s 263 of the Act, he has to issue a notice on or before 31.12.2011. In this case, he has issued notice on 04.03.2013 and the order was passed on 22.3.2013, which is time barred. Therefore, on this count, the order passed by the Ld. Commissioner cannot survive. In this context, the Hon'ble Supreme Court in the case of CIT Vs. Alagendran Finance Ltd. (supra) held that "In respect of an issue it was not subject matter of reassessment, limitation u/s 263(2) of the Act would run from the date of original assessment and revisional proceedings initiated in respect of such issue beyond the period of two years from the date of original assessment were barred by limitation". Keeping in view of the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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