Revision

The limitation for exercising jurisdiction under s 263 would not start from the assessment under s 143(1) of the IT Act but would start only from the order passed under s 143(3)/147 of the IT Act, dated 14 December 2007, as held by AhdTrib in Gujarat State Financial Corporation v CIT — In favour of: The revenue.

The AO was empowered to consider the same issue in the reassessment proceedings even if the same was not noted in the reasons for the reopening of the assessment, despite specific material available on record to prove prima facie that the income escaped assessment and, if AO fails to examine them, the order was to be termed as erroneous and prejudicial to the interests of the revenue.

Decided on: 12 August 2011.