2013 (4) TMI 698 - AT - Income Tax

Validity of assessment order passed - Bar of limitation in passing block assessment - Held that - Wherever the limitation starts from the date of receipt of the judgment/order by the appellant/respondent, the Legislature has made a specific provision in the concerned Act. In the Income-tax Act/ Rules specific provisions are made to clarify that the period of limitation always starts from the date of receipt of order by the appellant/respondent. But such type of clarification has not been given either in the High Court Rules or the General Clauses Act or any other civil laws. The writ petitions are filed as per the High Court Rules or the General Clauses Act where the limitation always starts from the date of pronouncement of the order/judgment. Therefore, once the stay is vacated, the assessee has to revert back to its position as on February 12, 2004 and the balance time available for framing the assessment was only up to April 15, 2010. Since the assessment order was passed on June 22, 2010, it is certainly barred by limitation. - assessment framed by the Assessing Officer is barred by limitation. Accordingly, we do not find any infirmity in the order of the learned Commissioner of Income- tax (Appeals) who has rightly annulled the assessment being barred by limitation - Decided against Revenue.

Summary

Issues:
1. Interpretation of limitation period for assessment under section 158BC of the Income-tax Act.
2. Determination of the starting point for limitation period in assessment proceedings.
3. Application of High Court rules regarding communication of orders and limitation periods.

Analysis:

Issue 1: Interpretation of limitation period for assessment under section 158BC of the Income-tax Act.
The appeal was filed by the Revenue against the order of the Commissioner of Income-tax (Appeals) annulling the assessment on grounds of limitation. The dispute revolved around the interpretation of the limitation period for assessment under section 158BC of the Income-tax Act. The Revenue contended that the limitation period should start from the date the order was received by the Assessing Officer, while the assessee argued that the limitation period should commence from the date of pronouncement of the order.

Issue 2: Determination of the starting point for limitation period in assessment proceedings.
The Tribunal analyzed the facts, noting that a search was conducted at the assessee's premises in 2002, and the assessment proceedings were stayed by the High Court until 2009. The Tribunal held that in civil and High Court proceedings, the limitation period starts from the date of pronouncement of the judgment/order. It was emphasized that the time taken to obtain a certified copy of the order is excluded from the computation of the limitation period. As the assessment order was passed beyond the extended limitation period, it was deemed barred by limitation.

Issue 3: Application of High Court rules regarding communication of orders and limitation periods.
The Tribunal considered the application of High Court rules concerning the communication of orders and limitation periods. It was highlighted that while the Income-tax Act/Rules specify that the limitation period starts from the date of receipt of the order by the appellant/respondent, no such provision exists in High Court rules or civil laws. The Tribunal relied on the Supreme Court's judgment in a related case to support the position that once a stay is vacated, the assessee must revert to the pre-stay position, and any assessment beyond the prescribed limitation period is barred.

In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the Commissioner of Income-tax (Appeals)'s decision to annul the assessment as it was deemed barred by limitation. The judgment clarified the starting point of the limitation period in assessment proceedings under section 158BC of the Income-tax Act and emphasized the distinction between High Court rules and Income-tax Act provisions regarding the communication of orders and computation of limitation periods.