2023 (9) TMI 1529 - SCH - Income Tax

Validity of assessment u/s 144C - applicability of time limit prescribed u/s 153 - as decided by HC 2023 (8) TMI 460 - BOMBAY HIGH COURT having considered the language of Section 144C and 153, we cannot accept that the provisions of Section 153 are excluded to the operation of Section 144C. Petitioners, therefore, is correct in his submissions that the time limit prescribed under Section 153 of the Act would prevail over and above the assessment time limit prescribed under Section 144C of the Act. This is because the Assessing Officer may follow the procedure prescribed under Section 144C of the Act, if he deems fit necessary but then the entire procedure has to be commenced and concluded within the twelve months period provided under Section 153 (3) of the Act. The assessment has to be concluded within twelve months as provided in Section 153(3) of the Act when there has been remand to the AO by the ITAT under Section 254 of the Act. Within this twelve months prescribed, the AO has to ensure that the entire procedure prescribed under Section 144C is completed and pass a final assessment order. HELD THAT - We observe that the impugned judgment shall not be cited as a precedent in any other subsequent matter until further orders. We also clarify that the operative portion of the judgment shall apply only insofar as the respondents herein are in question.

Summary

The Supreme Court of India issued an order to issue notice to the respondents. The impugned judgment cannot be cited as a precedent in any other matter until further orders. The operative portion of the judgment applies only to the respondents in question.