9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 1381 - AT - Income TaxRevision u/s 263 - Period of limitation - whether order passed u/s.263 is barred by limitation u/s.153(5)? - HELD THAT - As per Sub-section (3) of Section 153 of the Act, an order of fresh assessment in pursuance of an order u/s.263 of the Act, setting aside or cancelling an assessment, may be made at any time before the expiry of nine months from the end of the financial year in which the order u/s.263 of the Act is passed by the Commissioner. Therefore, the order giving effect to that order passed by the AO dated 26.02.2016 is clearly beyond the time limit allowed u/s.153(3) of the Act and hence the ld.AR s plea is sustained. The order of the AO dated 26.02.2016 is quashed. Assessee appeal allowed.
Issues:
1. Barred by limitation u/s.153(5) of the Act. Detailed Analysis: The appeal was filed against the order of the Commissioner of Income Tax (Appeals)-5, Chennai, for the assessment year 2011-12. The assessment of M/s. Ejaz Tanning Co., the assessee, was revised under section 263 of the Income Tax Act, 1961, by the CIT(A), Chennai-9. The AO passed an order on 26.02.2016 determining the income at Rs.2,37,76,280. The assessee contended that the order dated 26.02.2016 was barred by limitation under section 153(5) of the Act and requested to quash the order. The dispute revolved around the time limit for passing an order of fresh assessment in compliance with a section 263 order. The Tribunal noted that as per sub-section (3) of Section 153, an order of fresh assessment pursuant to a section 263 order must be made within nine months from the end of the financial year in which the section 263 order is passed. The Tribunal found that the order passed by the AO on 26.02.2016 was beyond the time limit specified in section 153(3) of the Act. Consequently, the Tribunal upheld the plea made by the assessee and quashed the order dated 26.02.2016. Final Decision: The Tribunal allowed the assessee's appeal, ruling in favor of the assessee. The order of the AO dated 26.02.2016 was quashed as it was found to be beyond the time limit allowed under section 153(3) of the Act. The decision was pronounced on 23rd December 2020 at Chennai.
|
