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2005 (11) TMI 165 - AT - Income TaxValidity of assessment u/s 153 - Time limit for completion of assessments and reassessments - whether the assessment passed by AO, is barred by limitation of time in terms of section 153(2A)? - HELD THAT:- In our opinion, it is not essential that the word 'set aside' should be written in the order, where the order has been set aside, the order has been set aside must be borne out of the facts and context of the order. The provisions of s. 153(2A) and 153(3) are to be interpreted harmoniously. The word 'set aside' is defined in Webister 3rd New International Dictionary as "to put to one side, to discard, to set apart for a purpose, overrule." Going to the order of the CIT(A) relating to the ground Nos. 7 and 8, we find that the CIT(A) noted that the AO has not given credit of the instalment received by the assessee for working out the total investment made in moneylending business, therefore, he directed the AO to give allowance for the same for working out the total investment and also directed that for this purpose peak credit should be worked out and allowance must be given for the past savings made by the assessee. For working out the interest income, CIT(A) directed that the rate of 24 per cent should be applied and the business expenditure for earning such income should be deducted for working out the net income from interest. Thus direction was given that the interest income should be worked out only after working out the total investment. These directions are not the ones which can be followed by the AO without calling the assessee and without appreciating the various evidences/documents which are required for working out instalments received by the assessee, peak credit, computation of total investment, working out the expenditure incurred for by the AO by applying its mind. This will also tantamount to restoring the issue to the file of the AO to be decided afresh after giving the hearing to the party and following the direction of the CIT(A). This also implies that the assessment relating to these issues stand set aside and to be decided afresh in accordance with the directions of the CIT(A). We are of the view that the setting aside the assessment will include therein even the assessment, which has been set aside on some of the issues because an assessment can be regarded to be completed only when the total taxable income is determined and tax to be paid by the assessee is worked out. Until and unless, part of the issues are not decided, the total income of the assessee cannot be determined and the AO cannot raise the demand for the tax payable by the assessee. The setting aside the assessment could be borne out of the order of the authorities. We therefore hold that the orders passed by the AO are barred by limitation as the limitation as laid down u/s 153(2A) will apply to the facts of the case before us. Accordingly, we quash the orders passed by the AO for the AY's 1984-85 to 1986-87. Since the orders passed by the AO stand quashed, the other grounds taken by the assessee on merit do not survive. In the result all these appeals of the assessee are allowed.
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