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2023 (5) TMI 1093 - AT - Income TaxValidity of assessment order passed u/s 143(3) - scope of provisions of section 153(1) - period of limitations - due date for completing the assessment would be 60 days - HELD THAT - As no information was sought by the Indian Tax Authorities from MRA after the receipt of information on 14.07.2015 qua the assessee herein. Hence the due date for completing the assessment would be 60 days from 14.07.2015 as per the proviso to Explanation 1 to Section 153 of the Act, which would be 12.09.2015. We hold that the assessment order passed u/s 143(3) of the Act in the case of the assessee ought to be passed on or before 12.09.2015 in view of the provisions of section 153(1) read with Explanation 1 and proviso to the said explanation. The assessment order, having been passed on 30.03.2016 is clearly beyond the time limit of 12.09.2015 and hence we have no hesitation to conclude that the assessment order is time barred and bad in law. Decided against revenue.
Issues Involved:
1. Rejection of application u/s 154 without giving opportunity to the Assessing Officer (AO). 2. Assessment completed beyond the time limit prescribed in section 153(1)(a) of the Act. Summary: Issue 1: Rejection of application u/s 154 without giving opportunity to the AO The revenue contended that the Learned Commissioner of Income Tax (Appeals) ['Ld. CIT(A)'] erred in rejecting the application u/s 154 without giving an opportunity to the AO. The Ld. CIT(A) held that there was no mistake apparent from the record. The revenue prayed that the order of the CIT(A) be set aside and that of the AO be restored. Issue 2: Assessment completed beyond the time limit prescribed in section 153(1)(a) of the ActThe revenue argued that the Ld. CIT(A) was not justified in holding that the assessment completed on 31.03.2016 was beyond the time limit prescribed in section 153(1)(a) of the Act. The Ld. CIT(A) had set aside the assessment order on the ground that it was barred by limitation, as it was passed beyond the due date of 31.03.2015. The assessee filed its return of income on 29.09.2012, and the assessment was completed u/s 143(3) on 30.03.2016. The Ld. AO had made several additions and disallowances, including an addition of Rs. 2319,54,67,195/- on account of the transfer of shares without consideration and disallowance of expenses u/s 37. The Ld. AO filed a miscellaneous application before the Ld. CIT(A) contending that the decision suffered from a mistake apparent from the record, arguing that a reference was made to the Mauritius Revenue Authority (MRA) u/s 90, which should extend the time limit for assessment by one year. However, the Ld. CIT(A) dismissed this application. Upon appeal, the Tribunal reviewed the chronology of events, noting that the information from MRA was received by the competent authority (PCIT) on 14.07.2015. According to Explanation 1(viii) of Section 153, the period for completing the assessment should exclude the time taken for the foreign reference. The Tribunal concluded that the assessment should have been completed by 12.09.2015, and since it was completed on 30.03.2016, it was time-barred and invalid. The Tribunal dismissed the revenue's appeals, holding that the assessment order was time-barred and bad in law. The orders pronounced in the open court on 17th April 2023 confirmed the dismissal of the revenue's appeals.
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