Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 850 - HC - Income TaxValidity of scrutiny assessment - timeline within which the assessment has to be concluded - disallowance of bad debts/advances written off and under Section 14A - claims for refund - HELD THAT:- ITAT has directed the AO to consider the question of disallowance for bad debts/advances being written off and u/s 14A of the IT Act permitting the petitioner to produce further documents, and directing the AO to extend an opportunity of hearing to the petitioner and decide on the afore in the light of the judicial pronouncements. This order is common to all the three subject assessment years, and in fact, it is in view of the ITAT’s similar order for the previous assessment years. This Court, in view of the above, can only conclude that it is indubitable that the ITAT’s common order do not set aside or cancel the subject assessment orders requiring a fresh assessment. The first question is answered accordingly. As apparent that the respondents have issued the impugned notices after the petitioner’s applications dated 29.10.2020 as they were of the opinion that they could give effect to the ITAT’s orders dated 31.03.2015, but the respondents, consequent to this Court’s conclusion that the time for the AO to consider the question of disallowance of the claims of bad debts/ advances written off and under Section 14A of the IT Act stand lapsed as of 31.03.2017, must consider the petitioner’s representation dated 29.11.2020 for refund. ORDER [A] The petitions are allowed in part and the impugned notices dated 05.11.2020 and 06.11.2020 are quashed on the ground that they are issued after 31.03.2017 which would be impermissible because of the provisions of Section 153[7] of the Income Tax Act, 1961 as amended by the Finance Act 2016. [B] The respondents are directed to consider the petitioner’s representations for refund along with interest in the light of the decision of Shelly Products [2003 (5) TMI 4 - SUPREME COURT] The respondents shall so consider the representations within a period of 3 [three] months from the date of receipt of a certified copy of this order.
|