9911796707
TMI Blog2008 (9) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961. The Commissioner, Income Tax invoking the provisions of Section 263 of the said Act passed an order on 25.3.2004 setting aside the said assessment order and directing the Assessing Officer to calculate taxable income according to the merchantile system of accounting. The Commissioner of Income Tax gave a specific direction that the Assessing Officer shall pass the consequential orders "within a period of three months approximately". The assessee being aggrieved by this order passed by the Commissioner, Income Tax preferred the said appeal before the Tribunal. When the appeal came to be heard by the Tribunal on 13.11.2007, the learned counsel for the assessee pointed out that the Assessing Officer had not framed any assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o period of limitation has been prescribed for passing orders consequential to the order passed by the Commissioner Income Tax under Section 263. She submitted that the period of limitation that has been prescribed by virtue of Section 153(2A) only relates to cases where the entire assessment order has been set aside and a fresh assessment has been directed by the Commissioner in exercise of his powers under Section 263 of the said Act. She submits that to this extent the Tribunal has gone wrong in agreeing with the assessee that the appeal had become infructuous because no assessment order was framed within the time limit for framing such an order. Having heard counsel for the parties, we are of the view that the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nths approximately. This direction would certainly fall within the expression "such order thereon as the circumstances of the case justify" appearing in Section 263(1) of the said Act. It appears that it is in this context that the Tribunal concluded that the time for passing the order had expired. The consequential order had not been passed for over a period of approximately three years and eight months. Thirdly, we are of the view that where no period of limitation is prescribed then, in any event, a reasonable period of limitation ought to be adopted. The non-specification of a period of limitation does mean that the Assessing Officer can wait interminably or for an infinite period before passing the consequential order. And, in the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
