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TMI Blog2025 (2) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of clause (iii) of the Explanation below section 153B(3) of the Act and as per proviso to this section of the period available to the AO was less than 60 days.
Despite giving opportunities, no such report was furnished by the DR. In absence of the same, it is held that no valuation report was received in this case by the AO in pursuance of the impugned reference u/s 142A of the Act on 23.12.2016.
Therefore, in this case as no valuation report was received by the AO, the AO was not entitled for any extension of limitation period as claimed by him. Limitation date for passing the assessment order expired on 31.12.2016 and consequently, the assessment order passed by the AO u/s 153C r.w.s. 143(3) of the Act dated 28.08.2017 is barred by limitation and the same is quashed. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... r ground of appeal No. 1 which reads as: "1 That on the facts and in the circumstances of the case, Deputy Commissioner of Income Tax, Central Circle, Noida ( AO for short) grossly erred in law in assuming jurisdiction u/s 153 C of the Income Tax Act, 1961" in our favour, erred in dismissing grounds of appeal No.2,3,4 & 5 taken before him which respectively are as follows : "Ground No. 2 - Without prejudice to the generality of Ground of Appeal No. 1 above, the impugned assessment order is non-est in law as it has been passed without affording proper opportunity to the appellant of being heard. Ground No.3 - Without prejudice to the generality of Grounds of Appeal No. 2 above, the impugned assessment order is barred by limitation and, therefore, deserves to be quashed. Ground No.4-That on the facts and in the circumstances of the case, the AO has erred in including a sum of Rs. 13 Crores in the total income of the appellant u/s 68 of the Income Tax Act, 1961. Ground No.5-That on the facts and in the circumstances of the case, the AO has erred in disallowing interest of Rs. 51,65,890/- paid by the appellant to the unsecured creditors on loans aggregating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-10 to A.Y. 2014-15 are decided in favour of the appellant. 5.9 Though, addition made by AO was not justified in terms of provisions u/s 153C of the Act. However, it is open for AO to take remedial action in accordance with the provisions of income tax Act, to assess/reassess the income escaping assessment, if any." 5. Against the order of the Ld. CIT(A), the Revenue is in appeal before us. 6. At the outset, the Ld. AR submitted that as per ground no.3 in the CO filed by it, the impugned assessment order is barred by limitation and therefore deserves to be quashed. In this regard, the ld. AR filed a written submission, the relevant extract relating to this contention is reproduced as under:- 2.1. The first ground of appeal in the Cross Objections taken by the appellant is that the CIT(A) should have adjudicated upon our ground of appeal that the assessment order was barred by limitation. According to para 6 of the Assessment Order, the time limit for completion of the assessment was 31.12.2016 which according to the AO was extended because the valuation of property at Plot No. B-59, Sector-57, Noida was referred to the DVO Delhi on 23.12.2016. 2.2 The relevant facts lie in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the fair market value (FMV) of construction/ investment in the said property. Accordingly, the time limit for completion of assessment i.e 31/12/2016 was extended by the period taken by the valuation officer for submission of the valuation report Now, the assessment order is passed within the time limit specified u/s 153 / 153B of the Act." 7. On the other hand, the ld. Dr supported the order of the AO and the grounds of appeal filed by the Department. 8. We have heard the rival contentions and perused the materials available on record. In this case, a search and seizure operation u/s 132 of the Act was carried out in the case of Maconns, Meenu and Yadav Singh Group, Noida, covering its business premises and residentials of Directors, their family members and other business associates concern and other key persons on 27.11.2014. The AO recorded satisfaction u/s 153C of the Act (placed on 41-42 of the paper book) and issued a notice u/s 153C of the Act on 18.06.2015. As per the facts mentioned by the AO in para no.6 of the assessment order, the time limit for completion of the assessment was 31.12.2016 and the same was extended by the period taken by the Valuation Officer for su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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