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2021 (10) TMI 832 - HC - Income TaxReopening of assessment post annulling proceeding under Section 153C - time limit for completion of the assessment - finding of Tribunal that an AO could issue two notices - as per assessee tribunal failed to appreciate that until and unless one set of proceeding is disposed of, the Assessing Officer was precluded in law from initiating another proceeding under Section 148 of the Act and it ought to have been appreciated that the proceeding initiated pursuant to notice which was served on the assessee on 25.03.2011 continued - HELD THAT:- Section 153(2) of the Act provides that no order of assessment, re-assessment or re-computation shall be made under Section 147 after expiry of nine months where the notice under Section 148 of the Act was served on the assessee on or after 1st day of April, 2005 but before 1st day of April, 2011. Admittedly the notice was served on the assessee on 25.03.2011 and therefore, the time for completion of assessment proceeding in respect of Assessment Year 2004-05 and 2005-06 is 31.12.2011 i.e., nine months from the date of financial year in which notice under Section 148 of the Act was served. However, the order of assessment has been passed beyond the aforesaid period i.e., on 28.03.2013. Therefore, the proceeding for re assessment were completed beyond the period of limitation as prescribed under Section 153(2) of the Act. Admittedly, the first notice which was served on the business premises of the assessee was existing and was not withdrawn. Therefore, the same continued to subsist and the finding of the tribunal that Assessing Officer could issue two notices is perverse. Decided in favour of the assessee
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