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2016 (12) TMI 1654 - HC - Income TaxBlock assessment order barred by limitation - purpose of limitation under section 158BE - whether the order of the assessment which has been passed on August 24, 2001 is time barred or not? - period is to be counted from the date on which the direction under section 142(2A) is served on the assessee and not from the date of issue of direction by the Assessing Officer under section 142(2A)? - Held that:- It cannot be disputed that the period of exclusion will commence from the day on which the Assessing Officer gives a direction under section 142(2A) and would end on the day when the assessee furnishes such audit report. According to us, the date of issuance of the notice (i.e., January 18, 2001) is the day on which the Assessing Officer had taken a decision to get the books audited, when such decision is conveyed to the assessee then only it results into direction. A purpose of interpretation of clause (ii) above, read with the decision of the hon'ble Supreme Court (supra) would mean, the date on which the decision/notice is served on the assessee. In that view of the matter, January 23, 2001 will be the crucial date from which the period to be excluded is to be reckoned, and therefore, the period which is required to be excluded in the period from January 23, 2001 to July 17, 2001 from January 18, 2001 to January 23, 2001 it was only decision, and not the direction. The learned Income-tax Appellate Tribunal has thus committed no error of law in holding the assessment order to be time barred. - Decided in favour of the assessee
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