Karnataka Power Corporation Ltd. v. ACIT (2021) 85 ITR 518 (Bang.) (Trib.)

S. 154 : Rectification of mistake-Limitation-Doctrine of merger Notice proposing to rectify Assessing Officer’s order giving effect to order of Tribunal on appeal from order of revision by Commissioner-Limitation to be reckoned from date of original assessment order and not of order giving effect to Tribunal’s order. [S. 80IA, 154(7), 254(1), 263]

Allowing the appeal the Tribunal held that since computation of deduction under section 80-IA of the Act was never the subject matter of dispute in any proceeding under section 263 or under section 254 or in the Assessing Officer’s order under section 143(3) read with section 254 of the Act, limitation under section 154(7) of the Act, would have to be reckoned from the date of the original assessment order, i. e., February 10, 2005. Therefore, rectification order dated March 28, 2012 was barred by limitation under section 154(7) of the Act. (AY. 2002-03)