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2014 (5) TMI 820 - HC - Income TaxValidity of reassessment order u/s 147 - Bar of limitation as per proviso to Explanation 1 to 153(2) of the Act – Held that:- For computing the period of limitation the period during which the assessment proceedings is stayed shall be excluded - the concept of communication of the order of the Court cannot be imported - The exclusion of the period has been provided because of stay or injunction by any Court during which the assessment proceedings are stayed - The intention is clear that when the limitation for assessment has started it can be stayed only by an order or injunction of any Court and as soon as the order or injunction of the Court is vacated, the period of limitation shall re-start since after the vacation of the order of the Court, there is no embargo on the authorities to proceed with the assessment - The contention of the Revenue that the limitation will start again only when the order is communicated to the Department thus cannot be accepted. Explanation 1 (v) and (vi) to Section 153 of the Act, 1961 are also part of the same statutory scheme - In Explanation 1 (v) and (vi) to Section 153 of the Act, 1961 the statutory scheme provides for computing the period of limitation from the date when the order under sub-section (1) of Section 245D and 245Q is received by the Commissioner - the legislature has provided for excluding the period from the date of communication of the order where they so intended - The use of concept of communication of receiving the order in the same provision which is absent in Explanation 1 (ii) concerned clearly indicates that for the purposes of Explanation 1 (ii), the communication of the order of the Court vacating the stay order or injunction is not contemplated - The provisions of Section 153 (3) (ii) of the Act, 1961 are clear and explicit - where the assessment, re-assessment or re-computation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act, the provisions of sub-section (1) (1a) and (1b) of the Act, shall not apply. Where the assessment, re-assessment or re-computation is made on the assessee or any person in consequence of or to give effect to any finding or direction in an order of any Court in a proceeding otherwise than by way of appeal or reference under this Act, the period of limitation as provided under Section 153 (2) of the Act, shall not be attracted - Relying upon Rajinder Nath Vs. Commissioner of Income Tax, Delhi [1979 (8) TMI 3 - SUPREME Court] - In the order dated 01/8/1995, neither there is any finding nor there is any direction which can be relied on by the AO for framing the assessment - There being neither any direction nor any finding within the meaning of Section 153 (3) (ii) of the Act, the contention of the revenue the Revenue that there shall be no limitation for making assessment cannot be accepted – Decided against Revenue.
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