2023 (1) TMI 1368 - HC - Income Tax

Assessment barred by limitation - as argued only the disputed purchase cases related issue was restored by the Income Tax Appellate Tribunal, therefore, provisions of section 153(3)(ii) is applicable in this case where no time limit is applicable - tribunal had noted the factual position and held assessment made on the respondents/assessee is barred by limitation but revenue seeks to take advantage of Section 153(3)(ii) - HELD THAT - As very same contention was raised by the revenue before the CIT (Appeals) who after noting the facts held that the provisions of Section 153(3)(ii) of the Act are not attracted in the facts and circumstances of the case on hand placing case of W.C. Shaw Pvt. Ltd. 2005 (1) TMI 318 - ITAT CALCUTTA-B . Thus we find that both the Commissioner of Income Tax (Appeals) as well as the Tribunal had taken note of the factual position and held the assessment to be barred by time. Hence, we find there is no substantial questions of law arising for consideration in this appeal.

Summary

Issues involved:
1. Delay in filing the appeal under Section 260A of the Income Tax Act, 1961.
2. Interpretation of provisions of Section 153(3)(ii) of the Act regarding time limitation for assessment.
3. Barred assessment due to limitation.

Analysis:

1. Delay in filing the appeal:
The High Court, after hearing the appellant's counsel and noting the absence of the respondent, decided to exercise discretion and condone the delay in filing the appeal, ultimately allowing the application.

2. Interpretation of Section 153(3)(ii) of the Act:
The main issue raised by the revenue in the appeal was the applicability of Section 153(3)(ii) of the Act, which deals with the time limitation for assessment. The Tribunal had previously noted that the assessment made on the assessee was barred by limitation. Both the Commissioner of Income Tax (Appeals) and the Tribunal had examined the factual position and concluded that the provisions of Section 153(3)(ii) were not attracted in the case. The decision was supported by a previous ruling of the Calcutta Bench of the Tribunal in the case of W.C. Shaw Pvt. Ltd. vs. Assistant Commissioner of Income Tax. Consequently, the High Court found that no substantial question of law arose for consideration in this appeal, leading to the dismissal of the appeal.

3. Barred assessment due to limitation:
The High Court affirmed the findings of the lower authorities that the assessment was barred by time. As a result, the appeal failed on consideration and was dismissed, with the affidavit-of-service being kept with the record.

In conclusion, the High Court's judgment addressed the issues of delay in filing the appeal, interpretation of Section 153(3)(ii) of the Income Tax Act, and the barred assessment due to limitation. The decision highlighted the importance of factual analysis and legal interpretation in determining the outcome of the appeal.