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TMI Blog2013 (12) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... ng substantial question of law:- "Whether the ITAT has committed substantial illegality by not recording a finding in terms of judgment of this Court dated 28.07.2009, passed in Income Tax Appeal No.148 of 2008 whereby the Division Bench of this Court held that it is not evident as to under what circumstances the special audit was not completed within the stipulated period of 30 days or whether the period of audit was extended by the assessing authority ?" The brief facts of the case are that the appellant-assessee is an apex level cooperative society registered under the Cooperative Societies Act, 1965 and is engaged in various business including the purchase and sale of agricultural products, seeds and fertilizers as a nodal agency of G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of 2008 before this Court, where this Hon'ble Court vide order dated 28.08.2009 has passed the following order:- "Before us, the question is as to whether the assessment made by the A.O. was barred by limitation or not Section 153 of the Income Tax Act deals with time limit for completion of the assessment. As per Clause (iii) to Explanation 1 of section 153, the period commencing from the date on which the A.O. directs the assessee to get his account audited under section 142 (2A) till the last day on which assessee was required to furnish the report of such audit would be excluded for the purpose of limitation pertaining to assessment order. In the instant case, the A.O. has directed the assessee to get his account audited by his lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal against the assessee. Still not being satisfied, again the assessee is before us in the present appeal. Thus, it is second round of litigation. With this background, Sri Mudit Agrawal, learned counsel for the assessee, with the help of Section 153, Explanation 1 sub-clause (iii) and the proviso to Explanation 1, submits that since original period for framing the assessment had expired on 30.03.2006 and there was no time left out on the day when the time given in the letter dated 08.03.2006 for getting its accounts audited had expired, no further time can be given to the Assessing Officer to frame the assessment. Therefore, the assessment is barred by limitation. He further submits that when no period is left out, it can not be extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 1. In computing the period of limitation for the purposes of this section. (iii) the period commencing from the date on which the [Assessing] Officer directs the assessee to get his accounts audited under subsection (2A) of section 142 and ending with [the last date on which the assessee is required to furnish] a report of such audit under that sub-section, or [Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (I), [(1A), (1B)] [(2), (2A) and (4)] available to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days, such remaining period shall be extended to sixty day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the time and it is not time barred as wrongly claimed by the assessee. Further, it is the assessee who has delayed the matter. When on 08.03.2006, the A.O. has written a letter first time, it was the pious duty of the assessee to get its accounts audited under section 142 (2A) of the Act or file objection, instead of that the assessee reached upto Hon'ble the Supreme Court. It would have been better, if everything was right, the accounts might have been audited as per direction of the A.O. especially when the assessee claimed that accounts were perfect and there was no requirement for getting accounts audited. Litigation cost is much higher in comparison of the audit fee. Moreover, in the instant case, the assessee never filed any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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