9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1139 - AT - Income TaxAssessment framed u/s 153A r.w.s 143(3) as barred by limitation - Extension of time seeked as reference made to the Swiss Tax Authority - DR stated as reference u/s 90 of the Act was made to Swiss authority and no information till the time of passing the assessment order was received, hence the time limit was extended by one year under Explanation IX to Section 153B - assessee stated that reference referred to by the ld. DR was in itself an invalid reference, therefore, an invalid reference could not have extended the period of limitation provided u/s 153B r.w. Explanation IX of the Act - HELD THAT - The Notification No. 2903 (E) is loud and clear and has specifically mentioned that Exchange of Information provided for in the said Protocol will be applicable for information that relates to any fiscal year beginning on or after the 1st day of April 2011 and if the said notification is read with the reference made by the department, we find that the specific periods for which the reference has been made calling for information is 01.04.1995 to 31.03.2012. Therefore, qua the notification, information called by the Revenue by issuing the said reference was invalid for the period prior to 01.04.2011. We are of the considered view that the information called for by the department from Swiss authorities could not have been received by them for the period prior to 01.04.2011. Therefore, it would be a futile exercise to wait for such information, and that too, by an invalid reference. Therefore, in our considered opinion, the period of limitation could not be extended as claimed by the Revenue. The impugned assessments are clearly bared by limitation and deserve to be quashed.
Issues Involved:
1. Jurisdiction under Section 153A and framing of assessment order. 2. Validity of reference to Swiss authority under DTAA. 3. Extension of limitation period for assessment order. 4. Penalty under Section 271(1)(c) of the Income-tax Act, 1961. Summary: Jurisdiction under Section 153A and Framing of Assessment Order: The appeals were filed against the order of the CIT(A) relating to assessments framed under Section 143(3) read with Section 153A of the Income-tax Act, 1961, and penalties levied under Section 271(1)(c). The common ground was that the CIT(A) erred in confirming the Assessing Officer's jurisdiction under Section 153A and in framing the assessment order, which was argued to be barred by limitation. Validity of Reference to Swiss Authority under DTAA: A search and seizure operation was conducted on 28.07.2011, and assessments were framed after issuing statutory notices. The department made a reference under Section 90 to the Swiss authority for information under the DTAA, which extended the time limit for passing the assessment order by one year. The assessee contended that the reference was invalid, and thus, could not extend the limitation period. Extension of Limitation Period for Assessment Order: The Tribunal examined the DTAA clauses and notifications, concluding that the information called by the Revenue was invalid for the period prior to 01.04.2011. The Tribunal cited various judicial precedents to support that an invalid reference could not extend the limitation period. Consequently, the assessments framed were deemed barred by limitation and quashed. Penalty under Section 271(1)(c): Since the assessments were quashed, the penalties levied under Section 271(1)(c) had no basis and were directed to be deleted. Conclusion: The appeals were allowed, and the assessments and penalties were quashed as barred by limitation. The Tribunal clarified that it did not decide the validity of the reference but whether the extended period of limitation was applicable. Order Pronouncement: The order was pronounced in the open court on 18.05.2023.
|
