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2020 (10) TMI 246 - AT - Income TaxAssessment order after expiry of time limit prescribed under section 153 - completion of assessment in case a reference has been made u/s 92CA(1) - applicability of newly inserted provisions of Section 144C - HELD THAT:- The third proviso providing revised time limit for completion of assessment in certain cases has been inserted by the Finance Act, 2012 with effect from 01/07/2012. This proviso provides an outer limit of three years from the end of relevant assessment year for completion of assessment in case a reference has been made u/s 92CA(1). The assessee’s case is covered by this third proviso. Provisions of section 144C of the Act vide which the assessee was given an option to take the benefit of specialised Dispute Resolution Panel as an alternate mechanism for expeditious disposal of dispute was inserted by the Finance (No.2) Act, 2009 w.r.e.f. 01/4/2009. The Hon'ble Madras High Court in the case of M/s. Vedanta Ltd. [2020 (1) TMI 168 - MADRAS HIGH COURT] has considered the issue of applicability of newly inserted provisions of Section 144C and has held that the amendment being substantive in nature would apply prospectively from assessment year 2011-12 onwards. The facts of the case, provisions of Section 153(1) of the Act (as they were applicable in AY 2009-10) and the ratio of judgement rendered in the case of M/s. Vedanta Limited (supra) makes it explicitly lucid that the provisions of section 144C would not apply in the impugned assessment year and hence, the time period for passing the assessment order would not get enlarged. AO was under obligation to pass the assessment order within the time specified under 3rd proviso to Sec. 153(1) of the Act i.e. on or before 31/03/2013. Since the order has been passed beyond the period of limitation the same is null and void. The assessee succeeds on the legal ground raised as additional ground of appeal. The assessment order is quashed and the appeal of assessee is allowed.
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