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2011 (12) TMI 426 - AT - Income TaxLimitation period of Completing Assessment u/s 153(1) - AO passed the assessment orders before the expiration of the limitation period but the said orders were sent for communication to the assessee after the expiry of the time limit for passing the assessment orders. Ld. CIT (A) held that the said assessment orders are barred by limitation and accordingly are ineffective and non-est in law as per sec. 153(1) - HELD THAT:- The said Assessment orders, though made on time, were served on the assessee after 85 days from the date of order. Also, there is no material in the assessment record which could indicate that initiative was taken by the AO to serve the assessment orders along with demand notice immediately after passing of the assessment orders. The decisions in the cases of B.J. SHELAT VERSUS STATE OF GUJARAT [1978 (3) TMI 209 - SUPREME COURT], as well as the decision of hon'ble Kolkata High Court, in the case of MOHENDRA J. THACKER AND CO. VERSUS COMMISSIONER OF INCOME-TAX, WEST BENGAL [1981 (6) TMI 13 - CALCUTTA HIGH COURT], were followed, where it was categorically held that the communication is a condition precedent to an order of assessment becoming effective. Thus, the impugned orders passed by the ld. CIT(A) are perfectly valid and sustainable for legal scrutiny. Thus, upheld. Decision in favour of Assessee.
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