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2023 (10) TMI 785 - HC - Income TaxTP Adjustment - Period of limitation u/s 153(2A) - Scope of amendment w.e.f. 1.4.2016 - retrospective effect - Legislative intention - consequential order passed by the AO after an inordinately delayed period of time - authority as denude of its powers after the prescribed time limit - appeal of the petitioner/assessee was partly allowed and the matter was remitted back to the file of AO with a direction to look into the aspect and take a decision in the matter after verifying the claim of the petitioner/assessee and giving a fair and reasonable opportunity of hearing - HELD THAT:- The very purpose of enacting sub-section (2A) goes to show that it has been enacted to meet with a situation where the original assessment order has been set aside/cancelled by the Appellate Tribunal or the Appellate Authority under Section 250 or under Section 254 or under Section 263 or under Section 264. Vide the said amendment in sub-section 3 of Section 153 is concerned with effect from 01.04.2016 onwards, the legislature has brought a time limit for adjudication of a proceeding under sub-section 3 as well which till the amendment was made was not stipulated. If the analogy of the principle contention of the learned counsel for the respondent-Department is to be accepted, then in that event, the very purpose of sub-section (2A) becomes redundant. The contention of Department also would not be sustainable for the reason that if, that would had been the intention of the legislature, then at the time of the amendment brought in to sub-section 3 of Section 153, the legislature would also had deleted the provision of subsection (2A), as it would not be any further required in the light of their contention and in the light of the subsequent amendment brought in to sub-section 3 of Section 153. In the light of above decision of Hon’ble High Court of Kerala DR R.P. PATEL [2015 (3) TMI 1291 - KERALA HIGH COURT] the contention of Department that Section 153 (2A) of the Act has no application to the present case as the Tribunal had only partially remanded the matter, lacks merit and is untenable. From plain reading of the judicial pronouncements and precedents we are of the considered opinion that the proceedings drawn, admittedly being beyond a period that is prescribed under sub-section (2A) of Section 153 and the consequential orders passed are all beyond the period of limitation prescribed under sub-section (2A) of Section 153. Hence, the same being not sustainable, deserves to be and is accordingly set aside/quashed.
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