2020 (1) TMI 1684 - AT - Income Tax

Assessment order as barred by limitation u/s 153 - HELD THAT - In this instant case, the assessment order was to be made by 31.03.2005. Whereas the impugned assessment order was made 2 years later - on 02.07.2007. Even the notice for hearing was issued after the period for making the order of assessment had already been time-barred - being notice dated 12.04.2007. We note that the CIT(A) has passed a reasoned order considering all the facts of the case and law applicable to the facts therefore it does not require any interference. We decline to interfere in the order passed by the CIT(A), his order on this issue, is hereby upheld and the grounds of appeal raised by the Revenue is dismissed.

Summary

Issues Involved:
1. Delay in filing the appeal by the Revenue.
2. Adjudication of the issue of limitation under section 153A by the Commissioner of Income Tax (Appeal).

Issue 1: Delay in filing the appeal by the Revenue
The appeal filed by the Revenue was barred by a delay of 41 days. The Revenue filed a petition for condonation of delay, which was heard by the tribunal. After considering the reasons provided in the petition, the tribunal decided to condone the delay and admitted the appeal for hearing.

Issue 2: Adjudication of the issue of limitation under section 153A
The Commissioner of Income Tax (Appeal) adjudicated the issue of limitation under section 153A. It was observed that the assessment order in question had been barred by limitation under section 153. The Hon'ble ITAT had previously remanded the issue to the Assessing Officer for fresh adjudication, making it fall under the mandate of section 153(2A). This section required the assessment order to be completed within a year from the end of the financial year in which the order under section 254 was received by the Commissioner. However, the impugned assessment order was made two years later, on 02.07.2007, which was after the time limit. The AR relied on a decision that dealt with similar issues. The tribunal upheld the order of the Commissioner of Income Tax (Appeal) on this issue, dismissing the grounds of appeal raised by the Revenue.

In conclusion, the tribunal dismissed the appeal of the Revenue, upholding the order passed by the Commissioner of Income Tax (Appeal) on the issue of limitation under section 153A. The detailed analysis provided by the tribunal considered the facts of the case and the relevant legal provisions, leading to the decision to decline interference in the order passed by the Commissioner of Income Tax (Appeal).