2013 (4) TMI 933 - AT - Income Tax

Summary

Issues involved: Appeal against order u/s 263 of the Income Tax Act, 1961.

Summary:

Issue 1: Communication of order under section 263:
The appeal was filed by the assessee against the order of the Commissioner of Income Tax-X, Chennai u/s 263 of the Income Tax Act, 1961. The assessee contended that the order was never communicated to them, and they only became aware of it when served with a notice under section 143(2) read with section 263. The Assessing Officer provided a copy of the order to the assessee on 29.11.2012, which was beyond the prescribed period of limitation. The AR argued that the order was non-est in the eye of law due to being served beyond the limitation period.

Issue 2: Compliance with limitation period:
The Tribunal noted that the impugned order was allegedly passed on 26.03.2012 and dispatched on 28.03.2012, but the assessee claimed they never received it until 29.11.2012. The Tribunal highlighted the provisions of section 263(2) which require the order to be passed within two years from the end of the financial year in which the order sought to be revised was passed. As the order was communicated to the assessee beyond this period, the Tribunal found it to be beyond the limitation period.

Issue 3: Legal precedent and conclusion:
Referring to a judgement by the Hon'ble Kerala High Court, the Tribunal emphasized the importance of issuing orders within the prescribed period to make them complete and effective. Relying on legal precedent, the Tribunal held that the order under section 263 was beyond the limitation period and, therefore, set aside the impugned order and allowed the appeal of the assessee.

Conclusion:
The Tribunal allowed the appeal of the assessee, concluding that the order under section 263 was beyond the period of limitation and, therefore, set it aside.

This summary provides a detailed breakdown of the issues involved in the legal judgment, focusing on the communication of the order under section 263, compliance with the limitation period, legal precedent, and the ultimate conclusion reached by the Tribunal.