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2023 (8) TMI 460 - BOMBAY HIGH COURTValidity of assessment u/s 144C - applicability of time limit prescribed u/s 153 - HELD THAT:- As the assessment has to be concluded within twelve months as provided in Section 153(3) of the Act when there has been remand to the AO by the ITAT u/s 254 of the Act. Within this twelve months prescribed, the AO has to ensure that the entire procedure prescribed u/s 144C is completed and pass a final assessment order. For this the AO has to be prompt in passing an order contemplated u/s 144C(1) of the Act and not wait to be reminded like in this case and still take almost two years to start the process. Sub-Section (13) of Section 144C provides that an assessment officer shall, upon receipt of the directions, issued under Sub-Section (5), in conformity with the directions complete, notwithstanding anything to the contrary contained in Section 153, the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month in which such direction is received. What is contemplated u/s 144C (13) is the passing of the final assessment order. Twelve months as provided u/s 153(3) would start from the end of the financial year in which the Principal Commissioner received the order u/s 254 from the ITAT. The assessing officer should have taken steps to pass the final order under Sub-Section (13) of Section 144C within 12 months period. The exclusion of applicability of Section 153, in so far as non-obstante clause in Sub-Section (13) of Section 144C is concerned, it is for limited purpose to ensure that dehors larger time available, an order based on the directions of the DRP has to be passed within 30 days from the end of the receipt of such directions. The Section and Sub-Section have to be read as a whole with connected provisions to decipher the meaning and intentions. A similar non-obstante clause is also used in Section 144C(4) of the Act with the same limited purpose to imply, even though there might be a larger time limit under Section 153, once the matter is remanded to AO by the ITAT under Section 254, the process to pass final order under Section 144C has to be taken immediately. The object is to conclude the proceedings as expeditiously as possible. There is a limit prescribed under the statute for the AO and therefore, it is his duty to pass an order in time. After 30th September 2021, the AO will have no authority to pass any final assessment order in this Case. We cannot accept the submissions of Shri Suresh Kumar that passing of draft assessment order before 30th September 2021 would suffice. We find support for this view in Roca Bathroom (SB) [2021 (4) TMI 355 - MADRAS HIGH COURT] and Roca Bathroom (DB) [2022 (6) TMI 848 - MADRAS HIGH COURT] Since no final assessment order can be passed in the present case as the same is time barred, the Return of Income as filed by Petitioner be accepted.
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