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2015 (10) TMI 2018 - AT - Income TaxRevision u/s 263 - CIT(A) directed the Assessing Officer to make a fresh assessment considering the computation of income as per provisions of section 11 of the Act and adjudicate properly the issue restored back by the Tribunal with certain directions - whether the case of the assessee certainly falls under clause (ii) of sub-section (3) of section 153? - period of limitation for initiation of rectification proceedings - Held that:- In the instant case, the Tribunal vide order dated 30.1.2009 directed the Assessing Officer to adjudicate the issue relating to the claim of exemption under section 11 of the Act and keeping in view registration under section 12A of the Act granted to the assessee without setting aside or cancelling the assessment order. It is also obvious from the record that when original assessment was framed, registration under section 12A of the Act was not available to the assessee, therefore, there was no question of adjudication of claim of exemption under section 11 of the Act and the Assessing Officer has computed the income as per the relevant provisions of the Act. Since the Assessing Officer has acted in accordance with law, the assessment order cannot be called to be illegal or irregular and that is why the Tribunal has not set aside or cancelled the assessment order. But on account of change of circumstances, the Tribunal has directed the Assessing Officer to adjudicate the issue of claim of exemption under section 11 of the Act in the light of registration under section 12A of the Act granted to the assessee. Since the Tribunal has neither set aside nor cancelled the assessment order and issued directions for compliance to the Assessing Officer, the case of the assessee certainly falls under clause (ii) of sub-section (3) of section 153 of the Act and for this subsection, no time limit is prescribed under the Act. Therefore, it cannot be said that the order passed by the Assessing Officer was barred by limitation. But from a careful perusal of the order passed by the Assessing Officer, we find that the Assessing Officer has simply computed the quantum of refund instead of adjudicating the claim of exemption raised under section 11 of the Act in the light of grant of registration under section 12A of the Act to the assessee as per the directions of the Tribunal. While allowing benefit of section 11 of the Act, the Assessing Officer is also required to examine whether the conditions prescribed under section 13 of the Act is fulfilled or not. But the Assessing Officer did not do this exercise and has computed the refund claimed by the assessee. Therefore, the order of the Assessing Officer is certainly erroneous and prejudicial to the interest of the Revenue which was rightly set aside by the ld. Commissioner of Income-tax. As already held in the foregoing paragraphs that the assessment orders passed by the Assessing Officer vide his order dated 8.8.2013 are not barred by time, as no time limit is prescribed for passing an order under section 153(3)(ii) of the Act. We accordingly find no infirmity in the orders of the ld. Commissioner of Income-tax, who has rightly set aside the orders of the Assessing Officer, as it was not passed in compliance of the directions of the Tribunal. We accordingly confirm the orders of the ld. Commissioner of Income-tax in both the assessment years. - Decided against assessee.
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