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Commissioner Of Income Tax, Chennai vs M/S. Alagendran Finance Ltd on 27 July, 2007

013. After hearing the rival contentions and perusing the materials available on record, we find that in this case, the assessment was framed u/s 143/ 147 of the Act vide order dated 25.03.2016 after the case was reopened u/s 147 of the Act. We note that the issue in the Page | 7 Barik Biswas; A.Y. 08-09 to 16-17 & 20-21 said reopening of assessment as recorded in the reasons to believe was with regard to cash deposited in the assessee's bank account. Thereafter the ld. Pr. CIT revised the said assessment order vide its revisionary order u/s 263 of the Act dated 20.11.2017, directing the ld. AO to pass the assessment afresh after examining the issue of violation of section 40A(3) of the Act with regard to purchases. We note that the issue on which the reopening was made vis a vis the issue on which the revisionary order was passed were two different issues and therefore, the assessment framed u/s 143(3)/147 dated 25.03.2016 is not amenable to revision u/s 263 of the Act, as the issue on which the reopening was made was completely different. Therefore, we find merit in the contention of the assessee that the revisionary jurisdiction exercised by the ld. PCIT u/s 263 of the Act and the order passed consequently dated 20.11.2017 were bad in law. Consequently all the proceedings, thereafter are also invalid and bad in law. Thus, the case of the assessee find support from the decision of Hon'ble Apex court in the case of CIT vs. Alagendran Finance Ltd (supra), wherein the Hon'ble Apex court has held that the order u/s 263 of the Act on an issue which was not subject matter of reassessment order. Moreover, if the order which was to be revised was the order passed u/s 143(1) and not u/s 143(3)/147 of the Act but that has become barred by limitation as on 31st March 2017.
Supreme Court of India Cites 18 - Cited by 141 - S B Sinha - Full Document

Keshab Narayan Banerjee vs Commissioner Of Income-Tax And Anr. on 28 August, 1998

We also note that the decision of the Hon'ble Apex Court was followed by Hon'ble Bombay High Court in the case of CIT Vs Lark Chemicals Ltd. (supra) and also by Hon'ble Calcutta High Court in case of Keshab Narayan Banerjee Vs CIT & Another (supra). Therefore, we are inclined to hold that the assessment framed u/s 144/263 of the Act dated 20.12.2018 is invalid and is hereby quashed on the ground that the same was framed in pursuance to invalid revisionary order passed u/s 263 of the Act.
Calcutta High Court Cites 16 - Cited by 10 - B Bhattacharya - Full Document

National Thermal Power Co. Ltd. vs Commissioner Of Income Tax on 4 December, 1996

06. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised an additional ground challenging the assessment framed in the set aside proceedings to be invalid as the revisionary order revising the assessment was itself invalid and nullity. In our opinion the issued raised in the additional ground is a purely a legal issue which goes to the root of the issue qua which all the facts are available in the appeal folder and no further verification of facts are required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authorities. The case of the assessee is squarely covered by the decisions of the Apex court in the case of i) Jute Corporation of India Ltd. Vs CIT (supra) ii) National Thermal Power Co. Ltd v. CIT (supra) and also by the decision of Hon'ble Calcutta High Court in PCIT vs. Britannia Industries Ltd. (supra). Therefore, we are inclined to admit the same for adjudication.
Supreme Court of India Cites 5 - Cited by 1462 - Full Document

Pcit vs Britannia Industries Ltd on 13 July, 2018

06. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised an additional ground challenging the assessment framed in the set aside proceedings to be invalid as the revisionary order revising the assessment was itself invalid and nullity. In our opinion the issued raised in the additional ground is a purely a legal issue which goes to the root of the issue qua which all the facts are available in the appeal folder and no further verification of facts are required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authorities. The case of the assessee is squarely covered by the decisions of the Apex court in the case of i) Jute Corporation of India Ltd. Vs CIT (supra) ii) National Thermal Power Co. Ltd v. CIT (supra) and also by the decision of Hon'ble Calcutta High Court in PCIT vs. Britannia Industries Ltd. (supra). Therefore, we are inclined to admit the same for adjudication.
Calcutta High Court Cites 0 - Cited by 2 - A Bose - Full Document

Principal Commissioner Of Income Tax 1 vs M/S Lark Chemicals P. Ltd. Through ... on 5 October, 2018

We also note that the decision of the Hon'ble Apex Court was followed by Hon'ble Bombay High Court in the case of CIT Vs Lark Chemicals Ltd. (supra) and also by Hon'ble Calcutta High Court in case of Keshab Narayan Banerjee Vs CIT & Another (supra). Therefore, we are inclined to hold that the assessment framed u/s 144/263 of the Act dated 20.12.2018 is invalid and is hereby quashed on the ground that the same was framed in pursuance to invalid revisionary order passed u/s 263 of the Act.
Supreme Court - Daily Orders Cites 0 - Cited by 18 - Full Document
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