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2011 (5) TMI 648 - AT - Income TaxPeriod of limitation – Block assessment – pre requisite for Special audit – A.O. suo-moto extended the period of audit – on non-co-operation of assessee A.O. passed ex-parte Block assessment order – validity of invokation of revisionary powers u/s 263 - Held that:- In view of the decision given by Punjab & Haryana High Court in the case of Jagjit Sugar Mills & Co. A.O. may, either on the application made by the assessee and/or for any good and sufficient reasons, extend the said period. However, the order u/s.142(2A) of the Act was itself not valid since special audit was ordered on 13.08.04 and CD’s(accounts) were opened only on 18.10.2004 resulting into non satisfaction of the condition regarding existence of complexity of accounts and loss of revenue as a consequence of the same. Consequently, the extended time available for passing the order of assessment in terms of Sec.158BE of the Act cannot also be availed by the AO. The order of assessment is therefore held to be barred by limitation. The order of assessment is therefore invalid and the consequent action u/s.263 of the Act setting aside such invalid assessment cannot also be sustained.- Decided in favor of assessee.
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