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2019 (11) TMI 854 - AT - Income TaxValidity of reassessment order passed u/s 147 - period of limitation after the vacation of stay by the HC - HELD THAT - Since assessment order passed beyond the limitation period i.e. beyond the time limit of 60 days as per the Explanation 1 (ii) to section 153 read with the Ist proviso to section 153 i.e. the order is passed after the expiry of 60 days from the date of vacation of stay by the High Court. And in parity with the above said ITAT order, we are not inclined to interfere in the order passed by the ld. CIT(A) . In our considered opinion, ld. CIT(A) has passed detailed and reasoned order. Appeal filed by the Revenue is dismissed.
Issues Involved:
1. Whether the assessment order passed on 04.02.2015 was barred by limitation of time. 2. Whether the learned CIT(A) erred in annulling the reassessment order. Detailed Analysis: Issue 1: Limitation of Time for Assessment Order The Revenue contended that the assessment order dated 04.02.2015 was not barred by the limitation of time, arguing that the delay in receiving the Gujarat High Court's order dated 29.07.2013 was not attributable to the Assessing Officer (A.O.). The A.O. could not proceed with the reassessment without the High Court's direction, as doing so would amount to contempt of court. The facts of the case reveal that the original return of income for A.Y. 2006-07 was filed by the assessee on 29.12.2006, and a revised return was filed on 30.03.2008. A notice under section 148 was issued on 30.03.2012, and the reasons for reopening the assessment were communicated to the assessee. The assessee objected to the notice, and the A.O. disposed of these objections by an order dated 16.01.2013. The assessee filed a writ petition before the Gujarat High Court, which passed an oral order on 18.03.2013, allowing the A.O. to continue with the assessment but not to pass a final order without the court's leave. The High Court vacated the stay on 29.07.2013. The A.O. passed the reassessment order on 27.02.2015, assessing the total income at ?97,28,38,307/- under normal provisions and ?114,03,61,418/- under section 115JB. The CIT(A) held that the assessment order was barred by limitation, as it was passed beyond the permissible time frame. The Tribunal examined the relevant dates and concluded that the A.O. had to pass the order within 13 days from 29.07.2013, extended to 60 days as per the first proviso to Explanation 1 to section 153. Thus, the order should have been passed by 27.09.2013. Since the order was passed on 27.02.2015, it was beyond the limitation period. Issue 2: Annulling the Reassessment Order The CIT(A) annulled the reassessment order, relying on the decision of the Hon'ble Allahabad High Court in CIT vs. Chandra Bhan and the ITAT Mumbai decision in Dilip Dahanukar vs. ACIT. The Tribunal upheld the CIT(A)'s decision, stating that the limitation period starts from the date the High Court vacated the stay, not from the date the A.O. received the order. The Tribunal emphasized that the presence of the Departmental Representative in court during the judgment makes the date of communication irrelevant. The Tribunal referred to the statutory scheme under Explanation 1 to section 153, which excludes the period during which the assessment proceeding is stayed by a court order. The Tribunal noted that the A.O. had 13 days remaining after the High Court vacated the stay, extended to 60 days, making the deadline 27.09.2013. The reassessment order passed on 27.02.2015 was thus void ab initio. Conclusion: The Tribunal dismissed the Revenue's appeals, affirming the CIT(A)'s decision that the reassessment order was barred by limitation and void ab initio. The Tribunal's analysis was based on the statutory provisions and judicial precedents, ensuring that the assessment order complied with the prescribed time limits. The appeals for both A.Y. 2006-07 were dismissed, and the CIT(A)'s detailed and reasoned order was upheld.
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