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TMI Blog2020 (7) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ous circumstances as existing in the instant case go to raise a lot of doubt in the entire transaction. One aspect that is absent in the instant case is the enquiry from the State Electricity Board with reference to the sale invoice raised on the assessee, the lease agreement entered into with the assessee payment of 20% of ₹ 4.93 Crores to the assessee and the answer to the question whether the assessee received 85% of ₹ 4.93 Crores or not. We are therefore, of the view that the matter requires reexamination at the level of the assessing officer. The order of remand has been issued with a view to give effect to the findings of the tribunal and neither the order of assessment has been set aside nor the assessing officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal dated 31.07.2006 by the Tribunal dated 31.07.2006 was under Section 153(2A) of the Act and therefore barred by limitation and not under Section 153(3) of the Act, which permitted the Assessing Officer an extended period, as the original assessment was neither set aside in entirety or cancelled and only directed to examine two items? (ii) Whether the Assessing Officer who passed an order dated 15.12.2009 was only giving effect to the order passed by the Tribunal dated 31.07.2006 and this order fell within Section 153(3) of the Act and not under Section 153(2A) of the Act as held by the Tribunal? 2. For the facility of reference, facts from ITA No.370/2011 are being referred to. The assessee is a manufacturer, seller and tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e findings of the assessing officer insofar as it granted the relief with regard to depreciation and notional interest and the matter was remitted to the assessing officer to consider the controversy afresh. 4. After remand, the assessing officer passed an order on 15.12.2009. The assessing officer disallowed 100% depreciation on pollution control equipments amounting to ₹ 4,93,00,000/-. The assessing officer also taxed the notional income on the amount of loan advanced to Madhya Pradesh State Electricity Board. The said order was subject matter of challenge before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by an order dated 30.08.2010 held that original order remanding the assessment was pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h assessment is issued. It is further submitted that the order of remand in the instant case, was not an open remand but was a limited remand and therefore, the limitation prescribed under Section 153(2A) of the Act did not apply to fact situation of the case. However, the aforesaid aspect of the matter has not been appreciated by the tribunal. It is further submitted that it ought to have been appreciated that the order was passed by the tribunal to give effect to its finding and therefore, the provisions of Section 153(3)(ii) apply to the facts of the case. It is also urged that in case where no limitation is prescribed, four years time has been held to be a reasonable time. In support of aforesaid submissions, reliance has been placed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ER OF INCOME TAX VS. PAUL NOEL RODRIGUES , (2015) 231 TAXMAN 0811 (KARNATAKA). 8. We have considered the submissions made on both the sides and have perused the record. Before proceeding further, it is apposite to take note of the relevant extract of Section 153 of the Act as it existed at the relevant point of time. The relevant extract reads as under: 153.Time limit for completion of assessment and reassessment: 1. xxxxxxx (2A) Notwithstanding anything contained in sub-sections (1) and (2), in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment under Section 146 or in pursuance of an order, under Section 250, Section 254, Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any court in a proceeding otherwise than by way of appeal or reference under this Act, for which no period of limitation is prescribed. However, it is trite law that even when no limitation is prescribed, the Act has to be performed within a reasonable time. 10. In view of aforesaid well settled legal position, we may advert to the facts of the case. The tribunal in para 12 of the order has held as follows: We have perused the submissions of the assessee, the paper book etc. from which it could not derived whether the assessee has received from MPSEB an amount to the extent of 85% of the cost of the equipment. Therefore, obviously, the Commissioner of Income Tax (A) has accepted the arguments of the assessee of its face value. The vari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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