Partial revival of appeal in M.A. by ITAT against order u/s 263 decided on merits, allowing to plead the case on merits and not on invocability of S.263 itself held to be perverse-State Bank of India DECEMBER 17, 2014 [2015] 62 taxmann.com 67 (Bombay)

Order of ITAT for AY 2005-06 was passed allowing order u/s 263 to redo assessment. There after for AY 2007-08, another order u/s 263 was passed but this order decided merits of the case on withdrawl of deduction for provision on standard assets of the assessee bank. ITAT again decided the case against the assessee following its earlier order. The assessee bank went in appeal u/s 260A before High Court. Meanwhile assessee also applied for MA u/s 254(2) before ITAT against which partial revival of appeal against withdrawl of deduction for provision on standard assets only was allowed, which meant that ITAT did not allow assessee to challenge the invocability of order u/s 263 itself. High Court reprimanded ITAT for partial revival of the appeal in M.A.