Tribunal held that the three issues raised by the PCIT did not pertain to the reassessment. Thus, the error, if any, committed by the AO related to the original assessment order. Where that part of the order of assessment was found to be prejudicial to interests of the Revenue which had nothing to do with the reassessment proceedings and was never a subject matter of the reassessment proceedings, the doctrine of merger would not apply and the period of limitation provided for in S. 263(2) of the Act would begin to run from the date of order of the original assessment and not from the order of reassessment. Thus, the revisional jurisdiction being beyond the period of limitation was wholly without jurisdiction rendering the entire proceeding a nullity.(AY.2008-09)
Shyam Steel Manufacturing Ltd. v. Dy. CIT (2020)77 ITR 37 (SN) (Kok.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Limitation-Doctrine of merger-Revision on issues not subject matter of reassessment but pertaining to original assessment-Limitation would run from date of order of original assessment and not from date of order of reassessment-Revision barred by limitation. [S. 143(3), 147, 263(2)]