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2014 (11) TMI 437 - AT - Income TaxVlidity of assessment framed u/s 158BC read with sec. 158BD - Period of limitation for block assessment - Earlier proceedings before settlement commission were abated – Held that:- Appreciations before the Settlement Commission shall not be allowed to be proceeded with unless the additional tax on the income disclosed in such application and the interest is not paid on or before 31st day of July, 2007 - taxes and interest have not been paid on or before 31st day of July, 2007 - the abatement of proceedings before settlement commission is covered u/s 245HA(1)(ii) read with explanation (b) being the specified date i.e. 31st day of July, 2007 - the assessee is covered u/s 245HA(1)(ii) and therefore, the proceedings before the Settlement Commission shall abate on the specified date as referred to in explanation (b) i.e. 31st day of July, 2007 - once the proceedings before the settlement commission are abated on 31st July, 2007 then there cannot be any occasion for the settlement commission to pass any order u/s 245D(4) read with section 245(4A)(i) - Also the proceedings which have been abated once, which is the case of assessee i.e. on 31st day of July, 2007 cannot again abate on a later date i.e. on 31.03.2008 which is the case of revenue - The Act is silent on such a situation – thus, the interpretation which favours the assessee, has to be adopted and accordingly the proceedings before the Settlement Commission get abated on 31.03.2007 and the proceedings before the AO get revived on 01.08.2007 – thus, the AO was required to pass the assessment order by 31.07.2008, which in fact has been passed on 31.03.2009 and therefore, the assessment by the AO for the block period is barred by limitation - the assessment so made is bad in law and the order of CIT(A) is reversed – Decided in favour of assessee.
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