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TMI Blog2023 (10) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancing the time limit for completing the assessment under section 143(3). We, therefore, uphold the plea of the assessee on this point as well. Thus we hold that the assessment order passed under section 143(3) read with section 144C(13) is barred by limitation for both the assessment years 2015-16 and 2016-17 - Decided in favour of assessee. - Shri G. S. Pannu, President And Shri Challa Nagendra Prasad, Judicial Member For the Assessee : Shri G. C. Srivastava, Shri Mayank Patwari; Adv.; And Shri Kalrav Mehrotra, C.A.; For the Department : Ms. Prajna Paramita; [CIT] - D. R. ORDER PER C. N. PRASAD, J. M. : 1. These two appeals are filed by the assessee against different orders of the ld. Commissioner of Income Tax (Appeals) New Delhi [hereinafter referred to CIT (Appeals)] for assessment years 2015-16 and 2016-17. The assessee filed application for admission of the following additional grounds in both these appeals. Assessment year : 2015-16 We refer to the above-mentioned appeal filed by the Appellant before D Bench. On perusal of records it is gathered that one additional Ground of Appeal is absolutely necessary for rendering substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be raised. But where the Tribunal is only required to consider a question of law arising from the facts which are on record in the assessment proceedings we fail to see why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee. The reframed question, therefore, is answered in the affirmative, i.e., the Tribunal has jurisdiction to examine a question of law which arises from the facts as found by the authorities below and having a bearing on the tax liability of the assessee. We remand the proceedings to the Tribunal for consideration of the new grounds raised by the assessee on the merits. Assessment year : 2016-17 We refer to the above-mentioned appeal filed by the Appellant before D Bench. On perusal of records, it is gathered that one additional Ground of Appeal is absolutely necessary for rendering substantial justice in the matter and to resolve the areas of dispute. The Appellant further submits that the additional ground of appeal is purely a legal issue and do not involve any investigation of facts and should be allowed to be raised even at the appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsider that question in order to correctly assess the tax liability of an assessee. The reframed question, therefore is answered in the affirmative, i.e. the Tribunal has jurisdiction to examine a question of law which arises from the facts as found by the authorities below and having a bearing on the tax liability of the assessee. We remand the proceedings to the Tribunal for consideration of the new grounds raised by the assessee on the merits. 2. The ld. Counsel for the assessee submits that the additional grounds of appeal raised by the assessee in both these appeals are purely a legal issue and do not involve any investigation of facts and, therefore, should be allowed to be raised before the Tribunal. Reliance was placed on the decision of the Hon ble Supreme Court in the case of National Thermal Power Co. Ltd. Vs. CIT [(1998) 229 ITR 383 (SC)]. 3. On hearing both the sides perusing the additional ground filed by the assessee we admit the additional ground being purely a legal ground following the decision of the Hon ble Supreme Court in the case of National Thermal Power Co. Ltd. Vs. CIT (supra). Ld. Counsel for the assessee submits that in both these assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 w.e.f. 01.04.2020 and the phrase 'returned income or loss' has now been omitted). vi) Accordingly, in the instant case i.e, for A.Y. 2015-16 and 2016-17, the last date of completing the assessment and passing the order for subject assessment year was 31.12.2017 and 31.12.2018 (in terms of Section 153(1) which prescribe a time limit of 21 months from the end of the A. . in which the income was first assessable). Against this, since the A.O. passed order under Section 143(3) r.w.s 144C on 11.02.2019 and 20.02.2019 respectively, the impugned order is barred by limitation. vii) The issue is squarely covered by the decision of this Hon'ble bench in the case of ACIT vs. SA Chitra Ventures Ltd. [ITA 6144 6145/DEL/2018]. viii) In any case, the issue is squarely covered by the decision of the Hon'ble ITAT Mumbai in the case of IPF India Property Cyprus (No. 1 Ltd.) ITA. 6077/Mum/2018. 5. The ld. DR strongly placed reliance on the orders of the authorities below. 6. On hearing both the sides we find that the issue is covered in favour of the assessee by the order of the Tribunal in the case of S.A. Chitra Ventures Ltd. in ITA. Nos. 6144 and 6145/Del/2018 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forward a draft assessment order to the eligible assessee, if he proposes to make any variation in the income or loss returned which is prejudicial to the interest of such assessee. Such eligible assessee with respect to such variation may file his objection to the DRP, a collegium of three Principal Commissioners or Commissioners of Income-tax. DRP has nine months to pass directions which are binding on the AO. It is proposed that the provisions of section 144C of the Act may be suitably amended to:- (A) include cases, where the AO proposes to make any variation which is prejudicial to the interest of the assessee, within the ambit of section 144C; (B) expand the scope of the said section by defining eligible assessee as a non-resident not being a company, or a foreign company. This amendment will take effect from 1st April, 2020. Thus, if the AO proposes to make any variation after this date, in j case of eligible assessee, which is prejudicial to the interest of the assessee, the above provision shall be applicable. 15. Similar view was taken by the co-ordinate bench at Mumbai in the case of IPF India Property Cyprus [No. 1] Ltd [supra]. The relevant findings rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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