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2017 (5) TMI 355 - AT - Income TaxAnnulling reassessment order - period of limitation - whether order passed after expiry of limitation provided in section 153(3)? - whether for computing period of limitation, period during which the assessment proceedings is stayed shall be included or period consumed in communication of Hon’ble High Court’s order to the AO shall also to be excluded? - Held that:- A perusal of the above details would indicate that 194 days are available to the AO from 29.7.2013. But he passed the assessment order after more than 200 days. The AO was of the opinion that time limit for passing the assessment order would commence from the date of communication of the order. It has been observed that this order was communicated to him on 14.2.2014 and he was to pass an order within 60 days from this date. Accordingly, he has passed it on 26.2.2014. But this interpretation of the Explanation (1)(ii) appended to section 153(1) has not been approved by the ld.CIT(A). The finding of the ld.CIT(A) is based upon orders of the ITAT, wherein the Tribunal has considered scope of Explanation (1)(ii) to section 153(1) of the Income Tax Act. This Explanation has fallen for consideration before the Hon’ble High Allahabad Court in CIT Versus Drs. X-Ray and Pathology Institute Pvt. Ltd. [2013 (11) TMI 19 - ALLAHABAD HIGH COURT] as held as soon as the order was vacated, the limitation will restart and will exhaust itself on the period of limitation provided under the Act – assessment Barred by limitation – Decided against the Revenue.
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