| COURT: | Gujarat High Court |
| CORAM: | K. J. Thaker J, K. S. Jhaveri J |
| SECTION(S): | 263 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Merger, Revision |
| COUNSEL: | R. K. Patel |
| DATE: | November 18, 2014 (Date of pronouncement) |
| DATE: | December 1, 2014 (Date of publication) |
| AY: | 1999-00 |
| FILE: | Click here to download the file in pdf format |
| CITATION: | |
| S. 263: Failure to conduct inquiry & hear assessee before issue of notice renders proceedings invalid. Order of CIT(A) results in merger of AO's order and bars s. 263 revision | |
It is clear that the assessee and the revenue both had preferred the appeals raising all the grounds, over and above the ground of deduction under Section 80HHC and 80IA of the Act, the order of the AO stood merged into the order of the CIT(A). In other words, what was at large before the Tribunal was not only the issue with regard to claim of the
assessee for deduction under Section 80HHC and 80IA of the Act, but, with regard to additions and disallowances made by the AO, as well. Thus, the principle of merger would apply in this case. Meaning thereby, once the CIT(A) partly allowed the appeal of the assessee in respect of the additions and disallowances made by the AO by way of order dated 23.03.2005, same got merged with the order of the CIT(A). Therefore, when the appeals filed by the assessee as well as the revenue before the Tribunal were pending, in view of the principle of merger and the decision of this Court in “COMMISSIONER OF INCOME TAX VS. SHASHI THEATER PVT. LTD.” (2001) 248 ITR 126, the assessee could not have been issued the notice under Section 263 of the Act, more particularly, in view of the fact that the matter was at large before before the Tribunal in its entirety. Even otherwise, in view of the fact that before issuing the notice under Section 263 of the Act, the assessee was neither heard nor the revenue conducted any inquiry, same deserves to be quashed and set aside.
Right logic by hon high court of gujarat. AOs just behave as they like is an impediment to revenue collections, obviously AOs do all this dramas for obvious reasons is apparent here!
Right logic by hon high court of gujarat. AOs just behave as they like is an impediment to revenue collections, obviously AOs do all this dramas for obvious reasons is apparent here!