TMI Blog2023 (5) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... N KUMAR GADALE, JM Appellant by: Shri Manoj Kumar, CIT-DR Respondent by: Shri Madhur Aggarwal, AR ORDER PER M. BALAGANESH AM: Both appeals by Revenue are filed against the separate orders of Learned Commissioner of Income Tax (Appeals)-12, Mumbai [ Ld. CIT(A) , for short], dated 03/04/2017 and 07/03/2017 for Assessment Years 2012-13. 2. The revenue has raised the following grounds in both the appeals:- ITA No.4322/Mum/2017 1. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in rejecting application u/s 154 without giving opportunity to the A.O. 2. On the facts and circumstances of case and in the law, the Ld. CIT(A) erred in rejecting the application u/s 154 of the act, filed by the A.O. holding that there is no mistake apparent from the record. 3. The Appellant prays that the order of the CIT(Appeals) on the above grounds be set aside and that of the AO be restore. 4. The Appellant craves leave to amend or alter any ground or to submit additional new ground, which may be necessary. ITA No.3317/Mum/2017 1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that a reference was made to Mauritius Revenue Authority (hereinafter referred to as MRA ) u/s 90 of the Act and therefore the assessment order should be restored as the ld. AO would get extended time limit of one year to frame the assessment in view of Explanation 1(viii) of Section 153 of the Act. The ld. CIT(A), however, vide order dated 03.04.2017 dismissed the miscellaneous application of the ld. AO holding that there was no such mistake apparent from record. 6. Aggrieved, the revenue has preferred the present appeals before us. 7. We find that in order to address the disputed issue of assessment being barred by limitation, the chronology of events listed hereinbelow would be relevant. We have also considered the chronology of events relevant to yet another company Cyquator Media Services Pvt Ltd along with the assessee herein for the sake of cohesive understanding of the disputed issue on limitation. Along with the relevant event, the submissions of the ld.AR and ld. DR are also considered by us by making specific reference to the paper book submitted by the assessee as under:- Sr. No. Date Event ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Tax Authorities w.r.t transactions with the assessee and Cyquator. 8 - 10 7. 08.05.2015 Common response filed by EMEL with MRA submitting certain details. 11 8. 08.06.2015 Common response filed by EMEL with MRA submitting balance details. In response, in Para f , EMEL filed details with respect to Cyquator and in Para g , EMEL filed details with respect to the assessee. 12 - 16 9. 18.06.2015 Details filed by EMEL for both the assessee and Cyquator with MRA were forwarded by MRA to Indian Tax Authorities. This is evident from the email dated 27.05.2022 from MRA confirming to EMEL that the aforesaid responses were forwarded to Indian Tax Authorities (Pg 17). This was pursuant to various opportunities provided to the revenue by this Bench to provide the requisite details to prove that the assessment was not barred by limitation. Pursuant to this, the revenue had placed on record this email dated 27.05.2022 received from MRA. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 153(1) provides that the assessment ought to be completed within 2 years from the end of the assessment year in which the income is first assessable. Explanation 1(viii) (now Explanation 1(x))to section 153 of the Act provides that: (i) the period commencing from the date on which a reference for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A and ending with the date on which the information so requested is received by the Commissioner or (ii) a period of one year, whichever is less. ought to be excluded for the purposes of computing the period of limitation for completing the assessment. The first proviso to the said Explanation further provides that if the limitation period after exclusion of the aforesaid time in making foreign reference is less than 60 days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly. In the present case for A.Y. 2012-13, the ordinary time limit for completion of assessment would therefore be 2 years from end of Assessment Year i.e. 31.03.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee filed further submissions with the ld. AO as required by him in the regular course of assessment proceedings. 16. 30.03.2016 Assessment under section 143(3) was completed by the ld. AO beyond the time limit prescribed under section 153 of the Act read with Explanation 1(viii) and proviso to the said explanation as explained in Sr. 12 above. It is pertinent to note that in the said assessment order, no addition was made on account of share premium / share capital money received by the assessee from EMEL (which was subject matter of verification with MRA) which clearly proves that the ld. AO had accepted the information received from FT TR on 14.07.2015 in so far as the assessee is concerned. Therefore, the ld. AO had not called for any further information from MRA qua the assessee. The ld. AO had made addition in respect of other transactions of the assessee which had nothing to do with the share subscription by EMEL. On the contrary, in the assessment in the case of the Cyquator, share premium / share capital money received by Cyquator from EMEL was taxed u/s 68 of the Act, which shows that the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returned the letter to the ld. AO with a direction to modify the same by duly incorporating the common information received from MRA in the case of assessee and Cyquator. Further the ld. AO on 20.12.22, filed a letter dated 17.11.22 addressed to ld. CIT DR ITAT E Bench stating that information received from MRA was forwarded to the field authorities on 14.07.2015. Further information was sought u/s 90 of the Act by the Indian Tax Authorities from MRA vide letter dated 04.09.2015. On 20.12.22, the revenue was directed to confirm in writing the following :- a) Whether any part information was received from MRA in the case of the assessee herein ? b) Whether further information sought by the Indian Tax Authorities vide letter dated 04.09.2015 pertain to the assessee herein? c) Whether any reminders were sent by Income Tax Authorities seeking information u/s 90 of the Act in the case of the assessee herein after 04.09.2015 ? 9. In response to the above three queries raised by the Bench, the ld. AO filed a letter dated 18.01.23 addressed to the ld. CIT DR ITAT E Bench, which was placed on record before the Bench. In the said letter, the ld. AO reproduced the order sheet noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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