COMMISSIONER OF INCOME TAX Vs. ICICI BANK LTD

JUDGEMENT

(1.) This appeal arises out of an order of the ITAT dated 24 September 2008 for Assessment Year 1996 97. The Tribunal has held that the invocation of the revisional jurisdiction under Section 263 of the Income Tax Act, 1961 by the Commissioner on 28 March 2003 was barred by limitation. The appeal by the Revenue raises the following substantial question of law:

(2.) The appeal is admitted and is taken up for final disposal with the consent of the counsel. In the present case the facts fall within a narrow compass. On 24 November 1997 an intimation was issued under Section 143(1)(a). An order was passed under Section 154 on 30 March 1998 to give credit for advance tax. An order of assessment was passed on 10 March 1999 under Section 143(3). The deduction claimed under clauses (vii) and (viia) of Section 36(1) and the foreign exchange rate difference was allowed. A notice was issued under Section 148 on 21 October 1999 following which the first Reassessment was carried out on 22 February 2000 for reworking a deduction under Section 80M. An appeal against the order under Section 143(3) was decided by the Commissioner (Appeals) on 28 March 2001. Thereafter a second notice was issued under Section 148 on 28 March 2001. Following that on 26 March 2002 a second order of reassessment was passed for reworking of the deduction under Section 36(1)(viii). This order was set aside by the Tribunal on 27 August 2010 and an Appeal (IT Appeal No.1237 of 2011) is pending. On 28 March 2003 an order was passed by the Commissioner under Section 263 for disallowance under Section 36(1)(vii), (viia) and in respect of foreign exchange rate difference. The narration of facts would indicate the following admitted position:

(3.) Sub section (2) of Section 263 provides that no order shall be made under sub section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.