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TMI Blog2024 (12) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal pertains to assessment year 1993-94. The appeal was admitted on the following substantial question of law : "Whether the order dated 15.09.2006 passed by the Assessing Officer under Section 220(2) of the Income Tax Act, 1961, is barred by limitation?" 3. Brief facts of the case: 3.1 Facts giving rise to filing of this appeal briefly stated are that the assessee filed returns for the assessment year 1993-94 and the Income Tax Officer, Ward-1(9), Hyderabad passed order on 26.03.1996 under Section 143(3) of the Act on a total income of Rs.4,56,200/- and issued demand notice for Rs.2,99,828/- and thereafter demand notice and assessment order were duly served on the assessee. Consequently, an order was passed by the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the said order, the assessee filed appeal before the Commissioner of Income Tax (Appeals)-V, Hyderabad and the Commissioner dismissed the appeal confirming the order of the Income Tax Officer by order dated 13.12.2007. Thereupon, the assessee filed further appeal before the Income Tax Appellate Tribunal (hereinafter referred to as "the Tribunal") and the Tribunal dismissed the appeal and confirmed the order of the Commissioner by its order dated 26.09.2008 holding that the provisions of Section 154 of the Act are not applicable and the Assessing Officer has rightly invoked the provisions of Section 220(2) of the Act. Thus, the assessee filed the present appeal. 4. Learned counsel for the assessee submitted that the Assessing Officer le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same is not applicable to do with levy of interest under Section 220(2) of the Act and the Assessing Officer levied interest through order dated 15.09.2006 invoking the provisions of Section 220(2) of the Act. It is further submitted that the assessee filed application under section 154 of the Act before the Assessing Officer for rectification of the said order. The said application was rightly rejected by the Income Tax Officer on 14.02.2007. It is further submitted that the Commissioner of Appeals after considering the grounds raised by the assessee has rightly dismissed the appeal on 13.12.2007 and the said order was confirmed by the Tribunal and there are no grounds to interfere with the order passed by the Tribunal. 5.2 It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 154 of the Act seeking rectification of the order dated 15.09.2006 passed by the assessing officer. The aforesaid application was rejected by the assessing officer on 14.02.2007. 7. Thereupon, the assessee filed appeal before the Commissioner of Income Tax (Appeals)-V, Hyderabad and the Commissioner of Income Tax (Appeals)-V, Hyderabad dismissed the appeal holding that the Assessing Officer has rightly charged interest exercising the powers conferred under the provisions of Section 220(2) of the Act and the same was confirmed by the Tribunal. 8. It is relevant to extract the provisions of Section 220(2) of the Act, which reads as follows: "(2) If the amount specified in any notice of demand under section 156 is not paid w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Company Limited (supra), Executive Engineer, Bangalore Water Supply and Sewerage Board (supra), Clix Capital Services Private Limited (supra) and Manik Chand Burman (supra) are concerned, the same are an authority for the proposition that in case the statute does not provide a period of limitation, the power has to be exercised within a reasonable time limit. The question whether or not the power has been exercised within a reasonable time, has to be decided in the facts and circumstances of each case. Therefore, the aforesaid decisions are of no assistance to the assessee. 11. The Tribunal while considering the provisions of Sections 220(2) and 154 of the Act and also the law, dismissed the appeal and confirmed the order of the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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