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2023 (5) TMI 874 - AT - Income TaxValidity of Assessment order passed u/s 143(3) - period of limitation specified u/s 153(1) - Time limit dealing with the return of income filed by an assessee - time limit for completion of assessment u/s 153(1) in the assessee`s case is within 21 months - In the assesee`s case the assessment was not framed/passed by the AO within 21 months from the end of the assessment year in which the income was first assessable, that is, on 31.12.2019 - AO should follow the time limit prescribed under the Act, otherwise assessment order passed by him will not be recognized in the eye of law - Why the time limit in the Income Tax Act is so necessary? HELD THAT:- Assessment/reassessment framed/passed by the Assessing Officer is in violation of the provisions of the Act, that is, it is outside the time limit for completion of assessment u/s 153(1) of the Act, which was within 21 months. In the assesee`s case, the assessment was not framed/passed by the Assessing Officer within 21 months from the end of the assessment year in which the income was first assessable, that is, on 31.12.2019. AO has passed/framed assessment order u/s 143(3) of the Act on 30.09.2021, which is beyond the time-limit for completion of assessment u/s 153(1) of the Act. Therefore, assessment order framed by the Assessing Officer is in violation of the provisions of section 153(1) of the Act, which is bad in law, hence we quash the assessment order, dated 30.09.2021, framed by the AO u/s 143(3) of the Act, being void ab initio. Assessment order framed by the AO was not in accordance with law, therefore we have quashed the assessment order.
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