2023 (3) TMI 211 - AT - Income Tax

Validity of the order passed u/s 143(3) r.w.s 144C (3) - period of limitation - HELD THAT:- As for AYs before the amendment, which has come into effect from 01.04.2020 in Section 144C of the Act, the cases in which no variation in the return income or loss were proposed, the draft assessment orders were not required to be issued. Accordingly, no extended period for concluding assessment.

In the case in hand admittedly there was no proposal for variation in the return income. The assessment order should have been passed by 31st December, 2018 while the impugned assessment order has been passed on 21.02.2019. Thus, impugned assessment order is beyond statutory time lines provided u/s 153(1) of the Act. Ld. CIT(A) has taken into account judgment of Hon’ble Madras High Court in World Part Ltd [2019 (9) TMI 390 - MADRAS HIGH COURT] however , in that case since the assessee had the alternate remedy available by way of appeal before Ld. CIT ( A ) the writ petition before High Court was disposed, without no findings on merits.

Thus, the Bench is of considered opinion that the ground no. 1 goes to the root exercise of jurisdiction of passing assessment order barred by limitations , therefore, the same along with sub grounds stands allowed.