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TMI Blog2017 (6) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... months from the end of financial year in which notice under section 148 of the Act was issued. Where the notice under section 148 of the Act was served upon the assessee on 24.01.2011, therefore, the period of nine months would expire by 31.12.2011. The assessment in the case has been completed on 29.02.2012 vide order passed under section 144 r.w.s. 148 of the Act. The CIT(A) has correctly quashed the re-assessment proceedings and held the assessment order to be invalid. - Decided against revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and reassessments as provided u/s 153 of the Act, are met once such draft order is issued. 5. For this and such other reasons as may be urged at the time of hearing, the order of the Id.CIT(A) may be vacated and that of the Assessing Officer be restored. 3. The hearing in appeal filed by the Revenue was fixed on 05.01.2017 and thereafter on 06.04.2017. However, none was present on behalf of the assessee. So, the learned Departmental Representative for the Revenue was directed to serve the notice upon the assessee. The learned Departmental Representative for the Revenue has filed on record the copy of report of Assessing Officer in this regard, wherein it is mentioned that the Inspector of office was deputed for service of notice of he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 144 of the Act and added the said amount as income of the assessee. The Assessing Officer passed a draft assessment order on 23.12.2011, copy of which was sent to the assessee and the same was returned by the postal authorities. Thereafter, another letter was sent to the address available of the assessee. The assessee in reply, stated that the draft assessment order was not received by it. The Assessing Officer was of the view that this was another attempt by the assessee to delay the proceedings; hence, the assessment order was passed under section 144 r.w.s. 147 of the Act, dated 29.02.2012. 5. The CIT(A) has held the re-assessment proceedings completed by the Assessing Officer to be time barred and have quashed the same, aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as accordingly, quashed the re-assessment proceedings and held the assessment order to be invalid. The Revenue is aggrieved by the order of CIT(A), sine the draft assessment order in this regard was passed on 23.12.2011 i.e. within stipulated period. However, the CIT(A) has dealt with the said plea of the Assessing Officer and has pointed out that the reference to the TPO was made before the proceedings of re-assessment, since the order of TPO is dated 29.10.2010. The notice under section 148 of the Act was issued on 14.01.2011. At the time of making reference to the TPO, no assessment or re-assessment proceedings were pending, therefore, fourth proviso to section 153(2) of the Act would not apply. The provisions of section 153(2) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 148 was served on or after the 1st day of April, 2010 and during the course of the proceeding for the assessment or reassessment or recomputation of total income, a reference under sub-section (1) of section 92CA is made, the provisions of this sub-section shall, notwithstanding anything contained in the second proviso, have effect as if for the words "one year", the words "two years" had been substituted. 8. The CIT(A) has correctly interpreted the said provisions and observed as under:- "3.9 From the above, it is seen that the Appellant's case would fall either under the second proviso or under the fourth proviso of the above Section. Close reading of these provisos would show that fourth proviso grants the time limit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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