PCIT v. Spicer India Ltd (No. 2) (2023) 458 ITR 42/ 294 Taxman 740 (Bom)(HC)

S. 260A : Appeal-High Court-Revision of orders prejudicial to revenue-Appeal-Appeal against the assessment order and revision order-Both orders to be heard together. [S. 10B(7), 80IA (8), 263]

The Commissioner invoked revisionary proceedings because the AO failed to apply his mind to the provisions of section 10B(7), read with sections 80-IA(8) and 80-IA(10). The Commissioner directed the AO to restrict the deduction under section 10B. The Assessee challenged the order passed under section 263 before the Tribunal and subsequently by the Revenue before the High Court. The High Court admitted the appeal filed by the Revenue. Pursuant to the Commissioner’s directions, the AO reframed the order under section 143(3) r.w.s. 263.

The Court held that since the order under section 263 was appealed by the Revenue before the High Court and admitted by a co-ordinate Bench of the High Court, the order passed under section 143(3) of the Act that has travelled to the Court ought to be admitted and tagged along. (AY. 2006-07)