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2016 (2) TMI 794 - AT - Income TaxValidity of assessment - rectification of mistake - barred by limitation u/s. 153(2A) - Held that:- No assessment is possible after the expiry of period of limitation, the provisions of section 153(2A) of the Act are absolute and they impose a fetter on income tax authorities to make a set-aside assessment after the expiry of periods mentioned in this sub-section. This is a statutory fetter which is not for the assessee to relax or waive or vice versa. The power to make assessment lapses completely upon the expiry of the periods mentioned in the section. The argument of Ld. DR that the assessee's case falls u/s. 153(3), which, inter alia, lays down that the provisions of sub-section 1 and 2 of section 153 shall not apply to assessments made on the assessee in order to give effect to any direction contained in an order u/s. 254 of the Act. But in the present case, the Tribunal has completely set aside the assessment on the abovementioned issue and directed the AO to reframe the assessment afresh. This provision of section 153(3), in the given facts of the case, is subject to the provisions of section 153(2A) of the Act. In other words, if a matter falls u/s. 153(2A) of the Act i.e. if the Tribunal has set aside or cancelled the assessment, then the fresh order by the AO of assessment shall be passed within the period as prescribed u/s. 153(2A) of the Act. Here, in the present case, assessee's case clearly falls under the 2 nd proviso to section 153(2A) of the Act. Therefore, in the present case, framing of order of assessment by the AO, of set aside assessment after expiry of limitation in terms of section 153(2A) of the Act is invalid. This ground of assessee's appeal on limitation is allowed. - Decided in favour of assessee.
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