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April 2012

Revision: Limitation: Two years: Section 263 of Income-tax Act, 1961: A.Y. 1994-95: Limitation period to be counted from the original assessment order to be revised and not from the order giving effect to the order of the CIT(A).

By K. B. Bhujle, Advocate
Reading Time 1 mins
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For the A.Y. 1994-95, the original assessment order was passed on 27-2-1997 and the order giving effect to the order of the CIT(A) was passed on 31-3-1999. The CIT passed an order of revision u/s.263 of the Income-tax Act, 1961 on 20-2-2001. It was the claim of the Revenue that the order of revision was within the period of limitation taking into account the assessment order dated 31-3-1999 giving effect to the order of the CIT(A). The Tribunal held that the period of limitation is to be counted from the date of the original assessment order dated 27-2-1997 and accordingly that the order of revision dated 20-2-2001 is beyond the period of limitation and hence is invalid.

On appeal by the Revenue, the Karnataka High Court upheld the decision of the Tribunal and held as under:

“The order passed by the CIT in exercise of the revisional jurisdiction beyond two years of the assessment order was clearly barred by limitation and hence rightly set aside.”

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