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2019 (8) TMI 996 - DELHI HIGH COURTValidity of proceedings u/s 153A - validity of order passed by ITSC u/s 245 D (4) - after abatement of the proceedings before the ITSC by virtue of an order passed u/s 245D (4) - limitation - HELD THAT:- No inconsistency between Clause (v) of Explanation 1 below Section 153 read with the second proviso thereto as they stood prior to 1st April 2017 and Section 153 B read with Clause (iv) below the Explanation thereto read with the first proviso which only dealt with the abatement of proceedings before the ITSC as a result of an order u/s 245 D (1) and not, as in the present case, an order u/s 245 D (4). In the instant case the order passed by the ITSC on 4th August, 2016 is an order under Section 245D (4) it enlarges the period of extension of limitation by one year in terms of further proviso to Section 153 below Explanation 1 that would apply. In terms thereof the notices issued to the Petitioners on 6th April, 2017 cannot be said to be time barred. Consequently, the objection raised by the Petitioners to the said notice was rightly rejected by the Respondent No.2 by the second impugned order dated 4th July, 2017. The ground on which the impugned orders dated 4th August 2016 of the ITSC are assailed are that they did not account for the numerous interlocutory orders earlier passed by the ITSC in the same matter that prima facie found in favour of the Petitioners. As already discussed earlier, the impugned final order dated 4th August 2016 of the ITSC u/s 245 D (4) was passed after a detailed report was received from the PCIT. This was a comprehensive report which provided more than adequate justification for the decision of the ITSC to conclude that there had not been a full and true disclosure by the Petitioners of all relevant facts. The impugned order dated 4th August 2016 of the ITSC calls for no interference. The period during which the present petitions were pending in this Court shall stand excluded for calculating the period within which the impugned assessments have to be completed.
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