The Tax Publishers2020 TaxPub(DT) 4722 (Del-Trib) : (2021) 187 ITD 0467

INCOME TAX ACT, 1961

Section 263

As there was no infirmity in the application for Settlement made by assessee before ITSC on 5-12-2019 and Settlement Commission also passed an order admitting application of assessee under section 245D(1) on 18-12-2019, therefore, from 5-12-2019 till the order under section 245D(4) was passed the only authority which could exercise jurisdiction for income-tax matters was only Settlement Commission and therefore, assumption of jurisdiction by Pr. CIT in passing an order under section 263 on 30-3-2020 was not proper.

Revision under section 263 - Erroneous and prejudicial order - Invocation of jurisdiction by Pr. CIT - Assessee's case pending for disposal before settlement

AO for the concerned assessment year 2015-16 framed assessment under section 143(3) by way of order passed on 29-11-2017. Pr. CIT by way of notice issued under section 263 dt. 12-9-2018 invoked reversionary jurisdiction on the ground of no enquiry by AO as regards short-term capital gain earned by assessee on sale of shares. Assessee filed an application before Settlement Commission under section 245C(1) on 5-12-2019. Pr. CIT by way of order passed under section 263 dt. 30-3-2020 set aside assessment order. Held: Relevant assessment year ended on 31-3-2016, the first four years would have ended on 31-3-2020, by which date notice under section 147/148 could have been issued to assessee and, therefore, assessee was legally entitled to approach Settlement Commission for settlement of his case for assessment year 2015-16. In view of this, there was no infirmity in the application for Settlement made by assessee before ITSC on 5-12-2019 and Settlement Commission also passed an order admitting application of assessee under section 245D(1) on 18-12-2019. Therefore, from 5-12-2019 till the order under section 245D(4) was passed the only authority which could exercise jurisdiction for income-tax matters was only Settlement Commission and therefore, assumption of jurisdiction by Pr. CIT in passing an order under section 263 on 30-3-2020 was not proper.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



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