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2017 (11) TMI 1483 - HC - Income TaxPeriod of limitation under Section 158 BD - start of limitation period - Held that - The limitation will start from 03.01.1997 and assessment is beyond one year. In that view of the matter, the contention that the appeal is required to be preferred before the Tribunal and such contention was not raised before the third member and limitation issue is a mixed question of law and facts can be raised any time.
Issues:
Challenge to Tribunal's judgment and order, substantial questions of law framed, limitation under Section 158 BD, applicability of limitation period, reliance on previous court decisions. Analysis: The appellant challenged the Tribunal's judgment allowing the assessee's appeal and dismissing the Department's appeal against the order of CIT(A). The Court framed substantial questions of law regarding the legality of dismissing the appeal by the Revenue, acceptance of documents by ITAT, and allowing benefit of telescoping/set off. The appellant contended that the third member's decision on limitation under Section 158 BD was erroneous as the appeal before CIT(A) was not competent, thus requesting a remittance of the matter back to the Tribunal for further considerations. Regarding the limitation period, the appellant argued that the Department believed a two-year limitation applied, not one year. The contention that the search conducted on 03.01.1997 rendered the appeal time-barred was raised, emphasizing that the assessment order had become final due to the delay in approaching the tribunal. The respondent, however, cited precedents from the Division Bench of the Court and the Gujarat High Court to support the one-year limitation period, asserting that assessments beyond this period would be barred by limitation. After hearing arguments, the Court considered the previous judgments and opined that the limitation period began on 03.01.1997, making the assessment beyond one year. It was concluded that the appeal needed to be filed before the Tribunal within the specified time, even if the limitation issue was not raised earlier. Consequently, the appeal was dismissed, ruling in favor of the assessee on the limitation issue as per the cross objection, and against the Department.
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