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2022 (2) TMI 1336 - KARNATAKA HIGH COURTValidity of assessment proceedings u/s 153(3) - period of limitation - Refund Claim alongwith interest as per Section 244 - HELD THAT:- The period u/s 153(3) read with Section 153(4) would stand extended till 31.12.2018 in terms of Section 92CA(3A) and the TPO would then be required to pass an order as on 31.10.2018. In the present case, the notice of TPO is dated 09.07.2021 as per Annexure-L. Clearly, on the admitted period available as discussed above, the notice is beyond the time prescribed and is the one barred by limitation and is liable to be set aside on that sole ground alone. What needs to be noticed is that the proceedings were restored back to TPO/AO/DRP in terms of the order dated 03.11.2016. Petitioner submits that since the entirety of the proceedings have been restored to the Officers abovementioned, the consequential refund of tax beyond the admitted liability is to flow and there is no further discretion at the end of the Department. If what has been restored is the entirety of the proceedings and as held above the notice dated 09.07.2021 being time barred, the logical consequence of refund of amount in excess of admitted liability insofar as the tax paid will have to be made good by the respondent-Department taking note of the principle under Section 240 of the Income Tax Act. Accordingly, the notice is set aside and the respondents to refund an amount in terms of the discussion made hereinabove alongwith interest as per Section 244 of the Income Tax Act for the Assessment Year 2006-2007, before the end of April 2022.
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