INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Assessment under section 153C - AO's power under section 153A - Validity of

During course of search under section 132 as well as survey action under section 133A, it was noticed that certain documents belonging to assessee were found at premises of those group concerns. Accordingly, proceedings under section 153C was initiated for the years. AO completed assessment of all four years under section 153C read with section 143(3). CIT passed revision order under section 263 on the ground that assessment orders passed by AO were prima facie erroneous and prejudicial to interest of Revenue. Assessee submitted that assessment orders have been passed by AO under section 153C in pursuance of search proceedings conducted. As per provisions of section 153A, all four years under consideration fall under the category of 'unabated assessments'.Held: The scope of assessment under section 153A in respect of unabated assessments had since been settled by High Court in case of Continental warehousing Corporation (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC). The Explanation given under section 153A(2) did not expand the scope of assessment under section 153A beyond what was interpreted by High Court. Thus, CIT was not correct in law in passing revision orders as assessment orders passed by AO, which fall under the category of unabated years, could not be held to be erroneous and prejudicial to the interests of revenue.

Followed:CIT-II, Thane v. Continental Warehousing Corporation (Nhava Sheva) Ltd., All Cargo Global Logistics Ltd. (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC). Relied:CIT v. S. Ajit Kumar, P.K. Ganeshwar And Braj Binani (2018) 404 ITR 526 (SC) : 2018 TaxPub(DT) 2096 (SC), CIT v. Amitabh Bachchan (2016) 384 ITR 200 (SC) : 2016 TaxPub(DT) 2291 (SC), Toyota Motor Corporation v. CIT (2008) 306 ITR 52 (SC) : 2008 TaxPub(DT) 2244 (SC), Malabar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83 (SC) : 2000 TaxPub(DT) 1227 (SC), CIT-II, Thane v. Continental Warehousing Corporation (Nhava Sheva) Ltd., All Cargo Global Logistics Ltd. (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC), Spectra Shares & Scrips (P) Ltd. v. CIT-III, Hyderabad (2013) 354 ITR 35 (AP-HC) : 2013 TaxPub(DT) 1603 (AP-HC), CIT v. Toyota Motor Corporation (2008) 306 ITR 49 (Del-HC) : 2008 TaxPub(DT) 1862 (Del-HC), Jagdish Kumar Gulati v. CIT. (2004) 269 ITR 71 (All-HC) : 2004 TaxPub(DT) 1606 (All-HC), Hanspro. com (P) Ltd. v. Pr. CIT, Central-7, Mumbai in (I.T.A. No. 3573/Mum/2016, dt. 31-1-2017), Crompton Greaves Ltd. v. CIT-6, Mumbai (2016) 46 ITR (Trib) 465 (Mum) : 2016 TaxPub(DT) 1379 (Mum-Trib), Subhlakshmi Vanijya (P) Ltd., Tulsi Tracom (P) Ltd., Kolkata and others v. CIT,-I, Kolkata & Ors. (2015) 43 ITR (Trib) 48 (Kol) : 2015 TaxPub(DT) 2950 (Kol-Trib) and Jitendra J. Mehta v. CIT, Cen. 4, Mumbai [ITA No. 1872/MUM/2015, dt. 24-6-2015].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 to 2011-12

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