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2014 (6) TMI 1045 - HC - Income TaxAssessment passed on revised return - revised return was filed beyond time - As per order of assessment framed by the Assessing Authority on the basis of such invalid revised return is a nullity and the Tribunal also held that even if the order of assessment is held to be passed on the original return it was barred by limitation as it is hit by Section 153 - HELD THAT - Assessment order was passed not on the basis of the revised return but on the basis of the original return and therefore the amount claimed as exemption was also liable to be taxed. Tribunal committed a serious error in holding that the assessment order is passed on the basis of the invalid return filed beyond time. Therefore it is a clear case of misreading. The order passed by the tribunal is ex-facie illegal and therefore the said order requires to be set aside and accordingly it is set aside. The return was filed for the assessment year 2001-02. The previous year begins from 1-4-2000 to 31-3-2001 and end of the assessment year is 31-3-2002. In view of Section 153(1)(a) two years period is prescribed for passing of the assessment order which ends on 31-3-2004. The assessment order was passed on 31-3-2004 and therefore the order passed by the Assessing Authority on the basis of the original return is in time. Unfortunately the Tribunal had not applied its mind properly and erroneously came to the conclusion that even if the assessment order is to be held as the assessment order passed on the originalreturn it is barred by time which again is ex-facie illegal and requires to be set aside. Appeal is allowed. The impugned order passed by the Tribunal is hereby set aside and the order of the Assessing Authority is restored. - Decided against the assessee.
Issues:
Appeal against the order of assessment based on original or revised return, Time limitation under Section 153 of the Income Tax Act. Analysis: 1. The appeal was filed by the Revenue challenging the order passed by the Income Tax Appellate Tribunal, Bangalore Bench. The Tribunal set aside the order of assessment, stating that it was either barred by time if considered based on the original return or invalid if based on the revised return filed beyond the time limit. The Tribunal held that the assessment order was null and void due to the invalid revised return and also stated that even if considered based on the original return, it was barred by limitation under Section 153 of the Act. 2. The case involved an assessee engaged in manufacturing and supplying ACSR conductors who claimed deduction under Section 80IA of the Act. A survey was conducted, leading to the assessee filing a revised return beyond the time limit. The Assessing Officer framed the assessment based on this revised return, leading to penalty proceedings. The Commissioner of Income Tax (Appeals) dismissed the appeal, which was further challenged before the Tribunal. 3. The Tribunal's decision was based on the fact that the revised return was filed beyond the time limit, rendering it invalid. The Revenue contended that the assessment order was based on the original return, not the revised one. The Tribunal's finding of the assessment order being time-barred under Section 153 was challenged by the Revenue, stating that the order was passed within the prescribed time limit. 4. The High Court observed that the assessment order was passed within the time limit prescribed under Section 153(1)(a) of the Act. It noted that the Tribunal's conclusion of the assessment order being time-barred, whether based on the original or revised return, was erroneous. Therefore, the High Court allowed the appeal, setting aside the Tribunal's order and restoring the order of the Assessing Authority in favor of the Revenue. Conclusion: The High Court allowed the appeal filed by the Revenue, setting aside the Tribunal's order and restoring the Assessing Authority's order. The Court found that the assessment order was passed within the prescribed time limit under Section 153 of the Income Tax Act, rejecting the Tribunal's conclusion of it being time-barred.
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