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TMI Blog2025 (1) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... on of assessment order since the issue is in appeal before the CIT(Appeals) and in such a situation the assessee would be covered under clause (c) of Explanation 1 to section 263 of the Act which puts a bar on initiation of proceedings u/s 263 of the Act when an appeal is pending before the Ld.CIT(A). Even otherwise also the powers of CIT(A) are co-terminus with those of the Assessing Officer and the Ld.CIT(A) can do what AO could do and can also direct the Assessing Officer to do what he has failed to do so. As decided in Smt. Renuka Philip [ 2018 (12) TMI 129 - MADRAS HIGH COURT ] when the larger issue was pending before the Ld.CIT(A) and in such circumstances the Ld. CIT could not exercise powers u/s 263 of the Act on account of statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.35 filed by the assessee before the Ld.CIT(Appeals), submitted that the issue of addition in respect of unpaid TDS on the payment made to ECL Finance Ltd. was already subject matter of appeal before the Ld. CIT(Appeals). Therefore, the proposal of the Ld. CIT to disallow 30% of the payment itself holding that the assessment order is erroneous and prejudicial to the interest of Revenue is beyond the scope and powers of the Ld. PCIT u/s 263 of the Act. Reliance was placed on the decision of the Hon ble Allahabad High Court in the case of CIT Vs. Vam Resorts and Hotels Pvt. Ltd. in ITA No.107/2015 dated 20.08.2019. Reliance was also placed on the decision of the Chennai Bench of the Tribunal in the case of Golden Vats Pvt. Ltd. Vs. ACIT (ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Commissioner, the exercise of jurisdiction under Section 263 of the Act is barred. The Commissioner in the order dated 14.03.2012 states that the appeal pertains to the claim made by the assessee under Section 54 of the Act and it has got nothing to do with the order passed by the Assessing Officer under Section 54F of the Act. The said finding rendered by the Commissioner is wholly unsustainable, since the assessee went on appeal against the re-assessment order dated 31.12.2009 stating that his claim for deduction under Section 54 of the Act should be accepted. 23. Therefore, in the process of considering as to what relief the assessee is entitled to, the Assessing Officer held that the assessee is entitled to claim deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , if the order passed by the Commissioner under Section 263 of the Act as confirmed by the Tribunal is allowed to stand, then the very purpose of the remand order against the original re-assessment proceedings would become a fait accompli. 25. Thus, for the above reasons we are fully satisfied that the assumption of jurisdiction by the Commissioner under Section 263 of the Act was wholly without jurisdiction as the twin tests have not been satisfied and consequently, the order dated 14.03.2012 as confirmed by the Tribunal by order dated 13.07.2012 calls for interference. 26. In the result, the appeal filed by the assessee is allowed and the order passed by the Commissioner dated 14.03.2012, under Section 263 of the Act as confirmed by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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