2021 (11) TMI 849 - AT - Income Tax

Revision us 263 - time limit for passing the order of assessment - whether the date of dispatch has to be considered as the date of the order and consequently the impugned order has to be held as bad in law and barred by limitation? - HELD THAT - As relying on M/S MAHARAJA SHOPPING COMPLEX 2014 (10) TMI 880 - KARNATAKA HIGH COURT wherein held the date of dispatch of the order of assessment should be construed as the date of order of assessment and consequently quashed the orders of assessment as barred by limitation - Following the aforesaid judgment of Hon'ble High Court of Karnataka, the impugned order has to be held as barred by time and is liable to be annulled and is hereby annulled. - Decided in favour of assessee.

Summary

Issues:
1. Assessment order under section 263 of the Income Tax Act, 1961 for Assessment Year 2013-14.
2. Barred by limitation - Date of dispatch of order under section 263.

Analysis:

Issue 1: Assessment order under section 263 of the Income Tax Act, 1961 for Assessment Year 2013-14

The appeal was filed against the order of Principal Commissioner of Income Tax (CIT), Bengaluru-1, under section 263 of the Income Tax Act, 1961, for Assessment Year 2013-14. The CIT found the order of the Assessing Officer (AO) allowing a deduction to the assessee under section 54/54F of the Act while computing capital gains to be erroneous and prejudicial to the Revenue's interest. Subsequently, the CIT set aside the AO's order and directed further verification of the claim under section 54/54F. The assessee appealed to the Tribunal against the CIT's order.

Issue 2: Barred by limitation - Date of dispatch of order under section 263

The assessee contended that the order under section 263 was received after the limitation period, which expired on 31-03-2018. The impugned order was dispatched to the assessee via speed post on 04-04-2018. The assessee argued that the date of dispatch should be considered as the date of the order, citing a decision of the Hon'ble Karnataka High Court. Referring to a similar case, the Tribunal found that the date of dispatch is crucial for determining the order's validity. Relying on the precedent, the Tribunal held that the order was indeed barred by limitation due to the delay in dispatch and annulled the order on this ground.

In conclusion, the Tribunal allowed the appeal on the basis of the preliminary ground of limitation and annulled the impugned order. The other grounds of appeal were not considered due to the decision on the preliminary issue.