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TMI Blog2015 (6) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... . The relevant facts relating to the issue expiry of the limitation of time in making assessments by the Assessing Officer includes that the assessee was covered u/s 132 of the Act on 26.10.2005. Notices u/s 153A were issued on 10.7.2006 requiring the assessee to furnish the returns of income for the years under consideration. The due date for completing the assessments is 31.12.2007 i.e 21 months from the end of the financial year in which the last of the authorizations was executed (i.e April 2006 to December 2007). This is a case where special audit was ordered by the Assessing Officer vide order dated 10.12.2007 giving 45 days time for the assessee to get the books audited and furnish the audit report. However, the said direction was served on the assessee on 25.1.2008 i.e after the due date for completion of assessments. subsequently, when the said audit report was not furnished by the assessee, the Assessing Officer suo motu extended the period vide his letter dated 10.3.2008 by giving another 135 days time totalling to 180 days permitted maximum time under the statute. Thus, the assessments were eventually made on 24.9.2008 u/s 153A r.w.s 144 of the Act. 4. In the backdrop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessments were actually completed on 24.9.2008. Referring to the date of 28.1.2008 introduced by the CIT(A), the ld. Counsel filed a copy of the order sheet obtained by him under RTI provisions, and submitted that it is a finding of the Assessing Officer that the service of the order for special audit was done on the assessee on 25.1.2008 only and the said date was misread by the CIT(A) as 28.1.2008. Accordingly, the CIT(A) wrongly computed the due dates for making the assessments and validated the orders of the Assessing Officer erroneously. But he forgot the fact that year 2007 is a leap year. If the above facts are considered, the decision of the CIT(A) is still erroneous and the assessments in question constitute time barred ones. The ld. Counsel also raised various issues regarding the powers of the Assessing Officer in suo motu extending the period of time under proviso to section 142(2C) of the Act. The suo motu powers granted to the Assessing Officer by an amendment in Finance Act, 2008 with effect from 1.4.2008 and the assessments under consideration are the ones prior to the said amendment. Further, the ld. Counsel submitted that extension of time can be done only on maki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is relevant. The said clause (ii) contains an expression "the period commencing from the day on which the Assessing Officer directs the assessee ......." . In the present case, the direction for special audit was communicated to the assessee on 25.1.2008 as is evident from the above order sheet notings of the Assessing Officer. In other words, it is an undisputed fact that the direction was communicated to the assessee after due date for making assessment i.e 31.12.2007 has expired. In that sense, the order of the Assessing Officer in directing for special audit u/s 142(2A) of the Act is invalid as the due date for making assessments has already expired. Even otherwise, if the date of the order of the Assessing Officer directing the assessee for special audit i.e 10.12.2007, is taken as valid which falls prior to 31.12.2007, the assessment should have been completed before 24.9.2008 i.e after excluding 45 days + 135 days + 60 days totalling to 240 days. That is not the case and the assessments are made on 24.9.2008. Thus, the impugned assessments are barred by limitation of time. 9. Coming to the date 28.1.2008 taken by the CIT(A), it is nowhere in the records and the said date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Assuming but not agreeing to the date of service) 28-01-2008 2 45 days for submitting the report ends on Month Days January 4 February 29 March 12 Total 45 12-03-2008 3 Assessing Officer suo moto extends the time limit by 135 days after the due date for submitting the report. (Assuming but not agreeing to the extension of time) 10-03-2008 4 Extended due date for furnishing the audit report Month Days March 19 April 30 May 31 June 30 July 25 Total 135 25-07-2008 5 The special auditor informs the Assessing Officer his inability to conduct tax audit 25-07-2008 6 Due date for completing the assessment (60 days from the end of the date of completion of speical audit) taking into consideration the proviso to section 153 of the Act Month Days July 6 August 31 September 23 Total 60 23-09-2008 7 Assessing Officer purports to have served notice to complete the assessment ex-parte based on seized material (assuming but not agreeing to the date of service) 22-09-2008 8 Draft assessment order sent to Additional Commissioner of Income Tax for approval and approval granted by the Additional Commissioner of Income Tax and Assessment Order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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