| The Tax Publishers2020 TaxPub(DT) 4165 (Mum-Trib) INCOME TAX ACT, 1961
Section 143
Where effect to an order under section 263 is to be given by AO, wholly or partly, otherwise than by making a fresh assessment or reassessment, such effect shall be given within a period of 3 months from the end of the month in which the order under section 263 was passed by revisional authority and as per proviso to this sub-section (5), prescribed authority might allow an additional period of 6 months to give effect to that order, since time limit to pass consequential order had already been expired and the same had become time-barred, therefore, appeal was dismissed.
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Assesseement - Effect of revision - Time-limit for completion of assessment, reassessment and re-computation -
CIT issued notice under section 263 for revision of assessment on the ground that assessment order passed by AO under section 143(3) read with section 144C was to be held erroneous in so far as it is prejudicial to the revenue. Accordingly, the Assessment order was revised and AO was directed to disallow the claim of expenses being payment of penalties to foreign authorities and an amount on account of the class action settlement consideration and to re-examine the claims of DTAA credit under section 90 and various claims on derivative transactions. CIT had, inter-alia, directed AO to disallow the expenses on account of penalties to foreign authorities as well class action settlement consideration paid by assessee. AO was further directed to re-examine the claims of DTAA credit under section 90 and various claims on derivative transactions. Held: As per sub-section (3), an order of fresh assessment pursuant to section 263, setting aside or cancelling an assessment, may be made at any time before the expiry of 9 months from end of financial year in which order under section 263 has been passed by revisional authority. As per sub-section (5), where effect to an order under section 263 was to be given by AO, wholly or partly, otherwise than by making a fresh assessment or reassessment, such effect shall be given within a period of 3 months from the end of the month in which the order under section 263 was passed by revisional authority. As per proviso to this sub-section (5), where it is not possible for AO to give effect to such order within the aforesaid period for reasons beyond his control, prescribed authority might allow an additional period of 6 months to give effect to that order. Since time limit to pass consequential order has already been expired and the same had become time-barred, therefore, appeal was dismissed.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2013-14
IN THE ITAT, MUMBAI BENCH
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