2017 (7) TMI 431 - SCH - Income Tax

Time barred assessment u/s 158BE(1)(b) - period of limitation - time taken for special audit under section 142(2A) - Held that - The special leave petition is accordingly dismissed. HC order confirmed 2015 (5) TMI 11 - CALCUTTA HIGH COURT . HC has held that the audit commenced on 13th November 2000 and was concluded on 24th April 2001. Thus 163 days were consumed in the audit. Therefore the period of 163 days has to be excluded from the period of limitation. It is not also in dispute that the delay is of 150 days under Section 158BE2 (b). If the period of audit comprising of 163 days is to be excluded the natural consequence will be that the assessment was within time. The defect if any in the proceeding which culminated into the order for audit and the submission of the audit report are mere irregularities which shall not invalidate the proceeding. - Decided in favour of revenue.

Summary

The Supreme Court dismissed the special leave petition as they did not find any grounds to interfere with the impugned order. Pending applications were also disposed of.