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2018 (12) TMI 1142 - AT - Income TaxAssessment barred by limitation by virtue of section 153(2A) - whether the time limit prescribed u/s 133(2A) of the I.T.Act is applicable for the assessment i.e. completed on 01.03.2010 pursuant to the ITAT s order dated 08.03.2007? - Held that - Section 153A states Notwithstanding anything contained in sub-section (1) (1A) (1B) and (2) in relation to the AY commencing on the 1st day of April 1971 and any subsequent AY an order of fresh assessment in pursuance of an order u/s 250 sec. 254 sec. 263 or sec.264 setting aside or cancelling an assessment may be made at any time beforethe expiry of one year from the end of the financial year in which the order u/s 250 or sec. 254 is received by the Chief Commissioner or Commissioner or as the case may be the order u/s 263 or sec. 264 is passed by the Chief Commissioner or Commissioner. In the instant case the Tribunal order dated 08.03.2007 was admittedly served on the Commissioner of Income-tax on 20.03.2007. Therefore going by the dictum laid down in the case of Dr.R.P.Patel v. ACIT 2015 (3) TMI 1291 - KERALA HIGH COURT the assessment ought to have been completed on or before 31.12.2007. Since the assessment order pursuant to the Tribunal order was completed only on 01.03.2010 we hold that the assessment was barred by limitation. - Decided in favour of assessee
Issues:
- Whether the assessment orders completed for assessment years 1994-95 to 1998-99, pursuant to the order of the ITAT dated 08.03.2007, are barred by limitation u/s 153(2A) of the I.T.Act. Analysis: The appeals before the Appellate Tribunal ITAT COCHIN were directed against five orders of the CIT(A) dated 17.10.2016 for the assessment years 1994-95 to 1998-99. The primary issue raised in all appeals was whether the assessment orders completed following the ITAT's order dated 08.03.2007 were time-barred under section 153(2A) of the I.T.Act. The ITAT noted that the Tribunal had directed the Assessing Officer to re-adjudicate the issue of foreign gifts, emphasizing the need for a reasonable opportunity for the assessee to be heard. The Assessing Officer contended that the original assessment order was not set aside or canceled by the Tribunal, hence the original assessment continued to be valid. Both the Assessing Officer and the CIT(A) rejected the argument that the assessment pursuant to the Tribunal's order was barred by limitation under section 153(2A). The additional ground raised by the assessee was whether the time limit prescribed under section 153(2A) was applicable for the assessment completed on 01.03.2010, following the ITAT's order dated 08.03.2007. The ITAT referred to the judgment of the Hon'ble Kerala High Court in Dr.R.P.Patel v. ACIT, where it was held that even when one issue is directed to be considered afresh, the limitation under section 153(2A) applies. Citing precedents from other High Courts, the ITAT concluded that the time limit prescribed under section 153(2A) was indeed applicable in this case. The ITAT highlighted that the assessment should have been completed by 31.12.2007, as per the Kerala High Court's ruling, but it was finalized on 01.03.2010, rendering it time-barred. Therefore, the ITAT allowed the appeals, holding that the assessment was indeed barred by limitation. In summary, the ITAT COCHIN ruled in favor of the assessee, allowing the appeals on the grounds that the assessment orders completed for the relevant assessment years were time-barred under section 153(2A) of the I.T.Act. The ITAT's decision was based on the interpretation of the Tribunal's directions, the applicability of the time limit prescribed under the Act, and the precedent set by the Kerala High Court in a similar case. The judgment emphasized the importance of adhering to statutory limitations in completing assessments, ultimately leading to a partial allowance of the appeals filed by the assessee. Order pronounced on 19th December 2018.
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