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2018 (12) TMI 309 - AT - Income TaxValidity of assessment order - period of limitation - CIT(A) annulled the assessment order - Settlement Commission rejected the application on the grounds that the admitted tax and interest on the income disclosed had not been paid - Held that:- Keeping in view the fact that the assessee's case has been duly taken up and an order has been passed by the ITSC against which the assessee has filed writ petition before the Hon'ble High Court of Punjab & Haryana by the virtue of whose orders the assessee has been granted the benefit of being heard by the ITSC in the second round which abated the proceedings and since the Assessing Officer, having received the information regarding the abatement of the cases on 25/04/2016 has completed the proceedings on 22/06/2016 which is well within the time allowed by the Act as the orders have been passed within 60 days from the order of the ITSC under section 245HA(1) r.w.s 245D(2D) of Income Tax Act,1961. Hence, we hold that the order of the Ld. CIT(A) cannot be sustained neither on the factual grounds nor on the legal grounds. As per section 245A the 'case' is admitted to the Settlement Commission when the proceedings are pending before the Assessing Officer and the assessment proceedings gets initiated only by issue of Section 143(2) which is a sine-qua-non for filing of application before the ITAT. Thus at this juncture revisiting the issue of notice under section 143(2) issued in the year 1996 after a period of 12 years would be an infructuous exercise as the settlement application would be accepted only if the assessment proceedings are pending and fact that the application has been allowed by the order of the ITSC under section 245D(1). Since the assessment order passed by the Assessing Officer is as a consequent to the order passed by the ITSC under section 245HA(2) the C.O of the assessee is liable to be dismissed.
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