TMI Blog2008 (3) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... Rakesh Kumar Garg, J . 1. The revenue has filed the present appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order dated 6.7.2005 passed by the Income Tax Appellate Tribunal Delhi Bench "A" New Delhi in ITA No.4075/Del/2003 for the assessment year 1998-99 raising the following substantial questions of law- "1. Whether on the facts and circumstances of the case, the ITAT was right in upholding the finding of the Ld. CIT(A) quashing the assessment framed under Section 143(3)/147 by interpreting the main Section 153 (2) of the Income Tax Act, 1961 by reading the proviso in such a manner so as to ascribe a particular meaning to the main provision without appreciating that the proviso on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd disallowances were made in this assessment. 3. Being not satisfied with the order of the Assessing Officer, the assessee filed an appeal before the CIT (Appeals) and besides contesting the disallowances made in the assessment, took up a ground that the assessment was time barred in view of section 153(2) of the I.T.Act and, therefore, the same should be quashed. It was contended that under section 153(2), the assessment proceedings have to be completed within one year from the end of the financial year in which the notice under section 148 was served. It was pointed out that the notice was served on the assessee on 11.01.2001, which is a day which fell before 01.06.2001 and, therefore, in such a case, the assessment ought to have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .6.2001 and are prospective in nature and since in the instant case, the notice under Section 148 of the Act was served before the amendment took place, the time available to the Assessing officer to complete the assessment should be computed in accordance with the unamended provisions of Section 153 (2) of the Act as it stood before the amendment and so the assessment made on 14.2.2003 was well in time. 7. However, on the other hand, Mr. Sanjay Bansal, Sr. Advocate has argued that the Tribunal was right in holding that the assessment was beyond the period of limitation as in the case of the assessee, notices which were served before 1.6.2001 were not protected or saved by proviso to sub section (2) of Section 153 of the Act which was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be made at any time up to the 31 st day of March 1990." 10. A perusal of the proviso to the amended Section 153 (2) of the Act clearly provides that the period of two years for completing the assessment has been prescribed only in those cases in which notices were issued between 1.4.1999 and 31.3.2000, meaning thereby that the amended proviso enlarges the period available to the Assessing Officer for completion of the assessment from one year, as available under amended sub-section (2) of Section 153 of the Act, to, two years, where notices under Section 148 were served during such period and the assessment could be completed up to 31.3.2002. Thus, only in such cases where notices have been served between 1.4.1999 and 31.3.2000, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the amendment came into force. Moreover, in the present case no prejudice has been caused to the revenue by applying the amended provisions of Section 153(2) of the Act in the case of the assessee as the Assessing Officer had sufficient time to complete the assessment. Moreover, the revenue has not pleaded any reasons for not completing the assessment upto 30.3.2002. Even otherwise, the provisions of Section 153(2) of the Act are procedural and are not substantive and it is well settled that procedural law is applicable to pending cases. 11. In view of this, we find no error in the order of the Tribunal and the question raised by the revenue is answered in the affirmative i.e. against the revenue and in favour of the assessee. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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