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2018 (1) TMI 809 - HC - Income TaxAssessment u/s 153C - limitation for assessment on search and seizure - fresh assessment ordered u/s 263 to be completed within the time provided under Section 153B - Held that:- On the question of limitation, Section 263 confers power on the Commissioner to revise orders, which are found to be prejudicial to the revenue. When such an order is made within the time provided for making such order, it cannot be said that the limitation under Section 153B has to be resorted to, which would be impossible of compliance. If no further extension is provided, either under Section 153B or under Section 263, for making a fresh assessment on the assessment being remanded to the AO, it has to be taken that there is no limitation provided. There is no limitation provided to carry out the assessment. The fresh assessment cannot be said to be possible only within the limitation provided under Section 153B, since the power to revise extends to two years while that under Section 153B is far lesser. The legislature cannot be said to have conferred a power redundant, ineffective and unworkable. In the present case, suffice it to notice that the Commissioner had passed the order cancelling the assessment and directing a fresh assessment on 12.03.2010, within the two year period provided under Section 263 of the Act. The fresh assessment was passed on 30.12.2010, a little more than nine months from the order of revision. Considering the fact that there was requirement for a fresh notice and a hearing, in making that fresh assessment and that too of seven years, we are of the opinion that the fresh assessment made under Section 153C is within a reasonable time. - Decided against assessee.
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