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2019 (7) TMI 288 - AT - Income TaxReopening of assessment u/s 147 - proceedings u/s 147 after expiry of 6 years - direction by court or mere observation - HELD THAT:- AO has initiated proceedings u/s 147 after expiry of 6 years and had not brought on record any failure on the part of the assessee. AO applied the provisions of section 150, when the findings of the coordinate bench are not direction but observation. Therefore, in our considered opinion, the proceedings initiated u/s 147 beyond 6 years are void ab-initio as the notice u/s 148 cannot be issued after the expiry of 6 years as per the time limit prescribed u/s 149 of the Act. In this case, AO issued the notice after expiry of 6 years and initiated the proceedings only after the observations made by the ITAT in its order. As stated earlier, the section 150 is also not attracted in this case. Therefore, the proceedings were initiated for reopening after period of limitation u/s 149 is void. - Appeal of the assessee is allowed.
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