9911796707
TMI Blog2025 (2) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... ad filed the return of income on 25.08.2015 declaring income of Rs. 4,069/-. In this case, information was received from DDIT (Inv.), Unit-II(3), Hyderabad that a search and seizure operation u/sec.132 of the Act was conducted in the case of M/s. Skill Promoters Pvt. Ltd., on 22.10.2019 and certain incriminating documents i.e., excel sheets were found that the assessee Smt. Maliha Syeda had entered into an agreement with M/s. Skill Promoters Pvt. Ltd., for purchase commercial space for a total consideration of Rs. 37 lakhs and that an amount of Rs. 17.50 lakhs was paid through cheques and Rs. 19.50 lakhs was paid in cash over and above the registered value to the builder M/s. Skill Promoters Pvt. Ltd. During the impugned assessment year 2014-2015 the assessee has paid an amount of Rs. 8 lakhs by way of cash and the sources for the same have to be ascertained from the assessee. On perusal of the return of income, the Assessing Officer noted that the assessee had not offered true income in the return of income and the sources for the above sum of Rs. 8 lakhs paid in cash are not explained. Therefore, the Assessing Officer reopened the assessment u/sec.147 by taking necessary approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths notwithstanding anything contained in sub-ss. (1), (1A), (2), (3) and (3A) where a reference under section 92CA(1) of the Act is made during the assessment proceedings to the 'TPO. It is submitted that the except the cases where there is a reference to the TPO, the extended time-limit of 12 months for completion of assessment is not available even in a case of non-resident assessment, even though the said assessment proceedings are covered under s.144C of the Act. 3. It is submitted that in the present case, the AO has reopened the assessment vide notice dated 29.03.2021 issued under section 148 of the Act. The asst. order is passed on 25.05.2022. Therefore, the assessment order passed is barred by limitation as per provisions of section 153(2) of the Act. 4. The Appellant with the leave of the Hon'ble Tribunal desires to raise the following additional ground : The assessment order dated 25.05.2021 passed by the Assessing Officer under section 147 r.w.s. 144C(3) of the Income Tax Act is barred by limitation and non est in law, as the same is passed beyond the period of ONE YEAR from the end of the financial year in which the notice under section 148 of the Act was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year from the end of financial year in which notice u/sec.148 was served. Since in the instant appeal the Assessing Officer issued notice u/sec.148 Act on 29.03.2021 and the assessment has to be completed by 31.03.2022, whereas, the Assessing Officer has passed assessment order dated 25.05.2022 u/sec.147 r.w.s.144 of the Act. Learned Counsel for the Assessee further submitted that for the A.Y. 2014-2015 [ITA.No.834/Hyd./2024], the Assessing Officer issued notice u/sec.148 of the Act on 29.03.2021 and the assessment has to be completed by 31.03.2022 and the Assessing Officer passed assessment order for the impugned A.Y. 2014-2015 on 25.05.2022 u/sec.147 r.w.s.144 of the Act on identical grounds. He, accordingly, pleaded that the assessment order passed by the Assessing Officer is barred by limitation and is liable to be quashed for both the impugned assessment years i.e., 2013-2014 and 2014-2015. 9. The learned DR, on the other hand, fairly agreed that the grounds raised in the instant appeal are squarely covered by the decision of Coordinate Bench of Hyderabad Tribunal in the case of Shri Mir Ibrahim Ali, R/o. USA vs. ACIT, Intl. Taxation-1, Hyderabd (supra). However, he strongl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C(15)(b) of the I.T. Act, 1961. As per section 144C of the Act, the assessment of an eligible assessee shall be dealt with in accordance with the said provision. As per the provision of section 144C, in case of an eligible assessee, the Assessing Officer shall pass a draft assessment order and served on the assessee, if he proposes to make any variation in his total income. The assessee, after receipt of draft assessment order shall have two options. As per sub section (2) of section 144C, on receipt of draft assessment order, the eligible assessee shall within 30 days file its acceptance of the variations to the Assessing Officer or file his objection, if any, to such variation with the DRP. If the eligible assessee file his acceptance to the Assessing Officer, then the Assessing Officer shall complete the assessment within one month from the end of the month in which the acceptance is received. In case an eligible assessee files objection before the DRP, then the DRP shall issue its direction within 9 months from the end of the month in which the draft order is forwarded to the assessee. Thereafter, the Assessing Officer shall pass his final assessment order within one month from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohiuddin (supra), wherein the Coordinate Bench of the Tribunal has considered an identical issue and after considering relevant facts, has held as under : "8. We have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The assessee is a non-resident individual for the A.Y 2017-18 and is an eligible assessee as per section 144C(15) of the I.T. Act, 1961. As per section 144C of the Act, the assessment of an eligible assessee shall be dealt with in accordance with the said provision. As per the provision of section 144C, in case of an eligible assessee, the Assessing Officer shall pass a draft assessment order and served on the assessee, if he propose to make any variation in his total income. The assessee, after receipt of draft assessment order shall have two options. As per sub section (2) of section 144C, on receipt of draft assessment order, the eligible assessee shall within 30 days file its acceptance of the variations to the Assessing Officer or file his objection, if any, to such variation with the DRP. If the eligible assessee file his acceptance to the Assessing Officer, then the Assessing Officer shall co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 30.03.2021, the time limit for completing the assessment u/s 147 was available up to 31/03/2022 and thus, the final assessment order passed by the Assessing Officer u/s 144 r.w.s. 144C dated 12.01.2023 is clearly barred by limitation. 10. This proposition is covered by the decision of the Hyderabad Bench of the Tribunal in the case of Shri Farooq Ali vs. Income Tax Officer in ITA No.104/Hyd/2023 order dated 10/04/2024. The relevant findings of the Tribunal are as under: "23. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned DRP and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us by both sides. We find the AO in the instant case made addition of Rs. 2,55,75,000/- u/s 69 of the I.T. Act on the ground that as per the sale deed, the assessee had paid total sale consideration of Rs. 2,55,75,000/-on 5.10.2016 to the vendors by way of cash, that the vendors have admitted and acknowledged the same and the assessee could not explain the source of such payment made for purchase of the immovable property. While doing so, he further held that the sale deed in itself is concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s subsection shall have effect, as if for the words "twenty-one months", the words "nine months" had been substituted.] (1A) Notwithstanding anything contained in sub-section (1), where a return under sub-section (8A) of section 139 is furnished, an order of assessment under section 143 or section 144 may be made at any time before the expiry of nine months from the end of the financial year in which such return was furnished.] (2) No order of assessment, reassessment or re-computation shall be made under section 147 after the expiry of nine months from the end of the financial year in which the notice under section 148 was served: Provided that where the notice under section 148 is served on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "nine months", the words "twelve months" had been substituted." 25. Thus, a perusal of the above provision clearly shows that the time limit for completion of the assessment in the present case lapses on 31.3.2022. However, the final assessment order u/s 144 r.w.s. 144C has been passed on 30.01.2023 which is beyond the time limit prescribed u/s 153(2). Since the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
