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TMI Blog2018 (7) TMI 2330X X X X Extracts X X X X X X X X Extracts X X X X ..... As both the parties have agreed and conceded that in view of non-disposal of aforesaid jurisdictional issue by learned Pr. CIT which is purely legal issue which goes to the root of the matter as to whether learned Principal CIT is competent and empowered to invoke its revisionary powers within provisions of Section 263 with respect to the assessment order of the AO which is passed u/s 143(3) r.w.s. 144C(13) of the 1961 Act in pursuance of direction issues by learned DRP. Thus we consider it appropriate and deem fit to restore this matter back to the file of learned Principal CIT for disposal of this jurisdictional ground which is a legal ground as to competence of learned Pr. CIT to revise an assessment order passed by the AO u/s 143(3) r.w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, inasmuch as that provision, in terms, authorises the authorities specified therein to revise only an "..... order passed ..... by the Assessing Officer ....." and not an order passed by the Assessing Officer in pursuance of the directions of the Learned Dispute Resolution Panel ("Ld DRP"). * The Assessment Order dated 10th January, 2014 was neither erroneous, nor prejudicial to the interests of the Revenue. * The following determinations made by the Ld PCIT, viz,- * that a reduction of capital is one which has the effect of "reducing the face value of shares to NIL" and * that the cancellation of the shares held by the assessee in Tata Teleservices Ltd ("TTSL") in terms of the Schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iously, advisedly and deliberately. (vi) In any event, since a regular assessment had been made under Section 143(3) and that, too, in pursuance of the directions of the DRP, a presumption arises that the assessment order has been made upon application of mind [ CIT v Honda Siel Power Products Ltd [20111 333 ITR 547 (Del)]. Accordingly, the Ld AO having, after application of mind, taken one of two views available to him, his assessment order cannot be said to be erroneous and much less prejudicial to the interests of the revenue within the meaning of Section 263, and any attempt by the Commissioner to revise such an order under Section 263 would be without jurisdiction. GROUNDS ON MERITS 3. The cancellation during the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal grounds of appeal which are reproduced as hereunder:- "Cost of acquisition of shares 4. Without prejudice to the grounds raised in the appeal filed on 26 May 2016 and in the alternate, in case Ground No 3 of the appeal is not allowed, the cost of acquisition of shares of Tata Teleservices Limited remaining with the Appellant post cancellation, should be taken with reference to the cost of original shares (pre-cancellation) acquired by the Appellant. The Appellant craves leave to add, alter, delete or modify all or any of the grounds of appeal." 4. This appeal is filed by the assessee against revisionary order dated 28.03.2016 passed by learned Pr. CIT u/s 263 of the 1961 Act wherein it has , inter-alia, raised jurisdictional iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before Hon'ble tribunal u/s. 253(2A) of the 1961 Act against an assessment order passed by the AO u/s 143(3) r.w.s. 144C(13) of the 1961 Act in pursuance to directions of the DRP. Thus on this jurisdictional ground raised by the assessee as to powers of learned Pr. CIT to exercise its revisionary powers u/s 263 against an assessment order passed by the AO u/s 143(3) r.w.s. 144C(13) of the 1961 Act , it is contended by learned counsel for the assessee that the said grounds and contentions were duly taken before the learned Pr. CIT in the course of proceedings u/s. 263 of the Act and it is the contended that learned Principal CIT erred in not disposing of the said jurisdictional issue which goes to root of the matter . Our attention was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Principal CIT in its revisionary order dated 28.03.2016 passed u/s. 263 of the 1961 Act , we consider it appropriate and deem fit to restore this matter back to the file of learned Principal CIT for disposal of this jurisdictional ground which is a legal ground as to competence of learned Pr. CIT to revise an assessment order passed by the AO u/s 143(3) r.w.s. 144C(13) in pursuance to directions given by learned DRP and which in our considered view goes to the root of the matter , along with all other grounds raised by the assessee to decide de-novo in proceedings u/s. 263 more so when both the parties have also agreed and conceded that this matter needs be restored to the file of learned Principal CIT for disposal of the jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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