2016 (6) TMI 1500 - AT - Income Tax

Assessment order passed beyond the period of limitation - HELD THAT - From the final assessment order we could see that DRP had issued directions by its order dated 19.12.2014 and this order was received by the AO on 20.3.2014. The provisions of sub-section (13) of Sec. 144C mandates that upon receipt of the directions issued under sub-sec (5) by DRP AO shall inconformity with the directions complete the assessment within one month from the end of the month in which such directions are received by him. Apparently in this case the AO having received the directions on 23.12.2014 he should have completed the final assessment within one month from the end of the month in which he received the order i.e. by 31.1.2015. The final assessment order was passed on 27.2.2015 making the assessment beyond the stipulated period. Therefore since the final assessment made was barred by limitation the order passed is null and void. Thus we quash the assessment order dated 27.2.2015 passed u/s. 143(3) r.w.s. 144C(13) of the Act. Appeal filed by the assessee is allowed.

Summary

The appeal was filed by the assessee against the direction of the DRP-IV Mumbai for the assessment year 2010-11. The assessee contended that the assessment order was passed beyond the prescribed time limit and should be quashed. The final assessment order was passed on 27.2.2015, which was beyond the deadline of 31.1.2015, as per the provisions of Sub.Sec (13) of Sec. 144(C) of the Act. The Tribunal found the assessment order to be null and void due to being time-barred and quashed it. The Tribunal did not delve into the merits of the addition/disallowance made in the assessment order, as it was considered an academic exercise. Consequently, the appeal filed by the assessee was allowed.