2016 (10) TMI 1368 - AT - Income Tax

Validity of orders passed u/s 201(1) and 201(1A) - validity of Assessment u/s 153(2A) order passed by the A.O. as barred by limitation - HELD THAT - CIT (A) has held that the provisions of section 153 (2A) does not apply to orders passed u/s 201 (1) and 201 (1A). It is noted by him in Para 3.2 of his order that as per the A.O. Section 153 (2A) of the Act applies to only orders enumerated therein and does not cover orders passed u/s 201 (1) and 201 (1A). CIT (A) has reproduced the provisions of section 153 (2A) and since section 201 is not refereed therein, he confirmed the assessment order on this aspect. Now we examine the applicability of the judgment rendered in the case of CIT vs. Jodhan Real Estate Development Corporation Pvt. Ltd. 2004 (7) TMI 43 - RAJASTHAN HIGH COURT - We find that in that case, fresh order passed u/s 104 was also in dispute as time barred and the tribunal held in that case that it is time barred and this tribunal order was upheld by Hon ble Rajasthan High Court. We are of the considered opinion that if section 153 (2A) is applicable to order passed u/s 104 then there is no reason or basis to hold that it is not applicable to order passed u/s 201 and 201 (1A). Accordingly, we hold that all these orders passed by the A.O. u/s 201 and 201 (1A) are time barred. Hence these are quashed.

Summary

Issues:
Appeals against orders of CIT (A) for AYs 1996-97, 1997-98, 1999-2000, 2000-01; Objection on limitation under section 153 (2A) raised by assessee.

Analysis:
The appeals were filed against four separate orders of the CIT (A) for different assessment years. The assessee contended that the Assessing Officer's orders were time-barred under section 153 (2A). The learned AR of the assessee cited a judgment of the Hon'ble Rajasthan High Court in the case of CIT vs. Jodhan Real Estate Development Corporation Pvt. Ltd. The Revenue's representative supported the CIT (A)'s order.

The Tribunal observed that the CIT (A) had held that section 153 (2A) did not apply to orders passed under sections 201 (1) and 201 (1A). The impugned orders were issued to comply with a tribunal order from 2006. The Tribunal had to determine if section 153 (2A) was applicable to orders under sections 201 (1) and 201 (1A). The Tribunal noted that the Rajasthan High Court had upheld a tribunal order in a similar case involving section 104. Following this precedent, the Tribunal concluded that section 153 (2A) should apply to orders under sections 201 and 201 (1A). Consequently, the Tribunal held that the Assessing Officer's orders were time-barred and quashed them.

As a result of the decision on the limitation issue, the Tribunal did not delve into other grounds raised by the assessee. Therefore, all four appeals by the assessee were allowed.