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PCIT v. Inarco Ltd ( Bom)(HC),www.itatonline.org

S. 147 : Reassessment –With in four years- The assessment cannot be reopened on the ground that the AO lost sight of a statutory provision like 50C. This amounts to a review. A.L.A. Firm v. CIT (1991) 189 ITR 285 (SC) distinguished on the basis that the reopening in that case was because the AO was unaware of a binding High Court judgement. Here it is not the case of the Revenue that the AO was not aware of S. 50C at the time of passing the S. 143(3) assessment order [ S.50C, 143(3), 148 ]

Dismissing the appeal of the revenue the Court held that ; The assessment cannot be reopened  on the ground that the AO lost sight of a statutory provision like 50C. This amounts to a review.A.L.A. Firm   v. CIT (1991) 189 ITR 285  (SC) distinguished on the basis that the reopening in that case was because the AO was unaware of a binding High Court judgement. Here it is not the case of the Revenue that the AO was not aware of S. 50C at the time of passing the S. 143(3) assessment order .Court also observed that ,Bone must not lose the sight that the reassessment proceedings are not proceedings to review of the order already been passed but only a power to reassess.As observed by the Supreme Court in CIT v. Kelvinator India Ltd  (2010) 320 ITR 561, ‘We must also keep in mind the conceptual difference between power to review and power to reassess’   ( ITA No. 102 of 2016, dt. 23.07.2018) ( AY.2005-06)

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