Revision: Section 263: Block assessment: Addition made on basis of seized documents deleted by ITAT: Appeal pending before High Court: Revision directing the AO to consider the tax implications of the same seized documents not valid.

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[CIT v. Mukesh J. Upadhyaya (Bom.), ITA No. 428 of 2010 dated 13-6-2011] In the instant case, in the block assessment order dated 31-12-2002, the Assessing Officer made an addition of Rs.90 lakh on the basis of the documents seized from the premises of Vishwas R. Bhoir. The said addition was deleted by the Tribunal. Against the said order of the Tribunal the Revenue preferred an appeal before the Bombay High Court, which was pending. In the meantime, the CIT passed a revision order u/s.263 on 16.03.2005 directing the Assessing Officer to consider the tax implication of the page Nos. 1 to 13 of Bundle No. 12, seized from the residence of Vishwas R. Bhoir. The Tribunal set aside the order of the CIT on the ground that the addition of Rs.90 lakh was made after due consideration of both the documents referred to by the CIT. The Tribunal recorded a finding of fact that the two documents cannot be read independent of each other. The Tribunal held that once the taxability under both the documents has been considered by the Assessing Officer and also by the CIT(A), it is not open to the CIT to invoke the jurisdiction u/s.263 of the Act and direct the Assessing Officer to consider the taxability under those two documents once again.

On appeal by the Revenue, the Bombay High Court held as under: “In our opinion, no fault can be found with the decision of the Tribunal in setting aside the order of the CIT u/s.263 of the Act.”