HELD by the High Court that when the CIT(A) was examining assessee’s claim, it was open for the Revenue to point out to the CIT(A) that even if in principle the claim is allowed, a part thereof would not stand the scrutiny of law. Also, the CIT(A) could examine such issue suomotu. However, if the claim is allowed in entirety by CIT(A), then the AO cannot revisit such a claim and seek to disallow a part thereof as this would be contrary to the principle of merger statutorily provided and judicially recognized by law.(SCA. No. 16165 of 2017 dt. 19-02-2018) (AY. 2010-2011)
Gujarat Enviro Protection & Infrastructure Ltd. v. DCIT (2018) 91 Taxman.com 436 / 168 DTR 85 (Guj) (HC).
S. 147 : Reassessment – After the expiry of four years – Full and true disclosure – Merger of AO’s order with order of CIT(A) – AO having rejected the claim of deduction under S. 80-IA(4)and the CIT(A) allowing the claim in its entirety – AO cannot reopen this very claim for possible disallowance of part thereof