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2015 (1) TMI 1347 - AT - Income TaxAssessment order passed under section 143(3)/147 validity - barred by limitation of time u/s 153 - period of limitation - Held that:- Admittedly, in this case, notice u/s. 148 has been issued on 31.5.2002. Keeping in view the provisions of section 153(2) the assessment order should have been passed on or before 31.3.2004. However, assessment proceedings were stayed by the Hon'ble Jurisdictional High Court on 16.3.2004, which was vacated on 16.3.2011 when the writ petition filed by the assessee was dismissed. Admittedly, after 26.5.2011, there was no stay of proceedings before the AO. Thus, the period from 16.3.2004 to 26.5.2011 has to be excluded as per clause (ii) of Explanation (1) to Section 153 of the Act for the purpose of computing the period of limitation. If the above stay period is excluded, the period available for making the assessment order on 26.5.2011 with the AO was less than 60 days, the time limit for making the assessment shall be extended to 60 days i.e. upto 25.7.2011 as per proviso to Explanation (1) of Section 153 of the Act. Admittedly, in this case, the AO has passed the assessment order on 10.10.2011 i.e. beyond 60 days and the order passed by the ld CIT(A) is perfectly correct and, therefore, deserves to be confirmed. Accordingly, we confirm the order of ld CIT(A) in holding that the assessment order passed by the AO is barred by limitation as provided in explanation (1) (ii) to Section 153 of the Act and he was fully justified in annulling the assessment order dated 10.10.2011 passed by the AO.
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