2023 (6) TMI 1210 - AT - Income Tax

Reopening of assessment - Period of limitation - time limit for passing the assessment order - HELD THAT - We find that case of assessee for assessment year 2012-13 was reopened under section 147 of the Act. The notice u/s 148 was served upon the assessee on 29.03.2019 as recorded in para-2 of the assessment order. In response to notice u/s 148 of the Act, the assessee filed its return of income on 27.04.2019 and assessment was completed on 21.06.2021. We find that time period for passing the re-assessment was up to 31.12.2019. Thus, the assessment order, is passed beyond the time period prescribed u/s 153(2) - Decided in favour of assessee.

Summary

Issues Involved:
The judgment involves issues related to assessment orders passed beyond the limitation period specified under section 153 of the Income Tax Act, 1961 for assessment years 2012-13 and 2014-15.

For Assessment Year 2012-13:
The assessment order passed under section 143(3) r.w.s 147 on 21.06.2022 was beyond the time period prescribed under section 153(2) of the Act, rendering it bad in law and void ab initio. The appellant's grounds in the Cross Objection included challenging the disallowance of purchase and the validity of the assessment order.

For Assessment Year 2014-15:
The assessment order under section 143(3) r.w.s. 263 passed on 23.04.2021 was beyond the time period prescribed under section 153(3) of the Act. The appellant raised objections in the Cross Objection against the disallowance of purchase and the validity of the assessment order.

Decision:
The additional grounds raised in the assessee's Cross Objections were considered for adjudication. In both cases, where the assessment orders were passed beyond the prescribed time limits, the orders were set aside and subsequent actions were deemed void ab initio. The appeals filed by the Revenue were dismissed as infructuous. The judgment highlighted the importance of adhering to the statutory time limits for passing assessment orders under the Income Tax Act, 1961.

Separate Judgment Delivered:
The Cross Objections filed by the assessee were allowed, and the appeals by the Revenue were dismissed as infructuous in both cases for assessment years 2012-13 and 2014-15. The assessment orders passed beyond the specified time limits were declared void ab initio, emphasizing the significance of complying with statutory provisions in tax assessments.