2011 (11) TMI 691 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax (Appeals)-I, Pune u/s 154 r.w.s 143(3) and section 254 of the Income-tax Act, 1961 for assessment year 1992-93.

Issue 1: Barred by Limitation u/s 153(2A) of the Act

The appellant raised an Additional Ground challenging the order dated 24.4.2007, adding &8377; 3,38,024, as barred by limitation u/s 153(2A) of the Act. The Tribunal directed to hear the appeal to dispose of this Ground. The appellant contended that the order was beyond the prescribed time limit as per section 153(2A) since the issue was set aside to the Assessing Officer by the Tribunal in 2003. The Revenue argued that section 153(2A) was not applicable as the Tribunal did not cancel the assessment but only set aside the issue for fresh consideration. The appellant relied on a Tribunal decision to support that setting aside even some issues qualifies as setting aside the assessment under section 153(2A). The Tribunal held that the order dated 24.4.2007 was indeed beyond the limitation prescribed under section 153(2A) and set it aside, rejecting the Revenue's argument that section 153(3) applied instead.

Decision:

The Tribunal found the order dated 24.4.2007 to be barred by limitation u/s 153(2A) of the Act and allowed the Additional Ground raised by the assessee. The captioned proceedings were allowed, and the decision was pronounced on 29th November 2011.