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TMI Blog2025 (2) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... nal grounds raised by the assessee.
Penalty u/sec.271(1)(c) on account of concealment of particulars of income is to be deleted. X X X X Extracts X X X X X X X X Extracts X X X X ..... ceforth "the Act") and sustained by the Id. CIT(A). In the present case, the notice under section 148 of the Act reopening the assessment was issued on 29.03.2021. There is no reference under section 92CA of the Act in respect of any international transaction. In view of the above, the limitation to pass assessment order as per Proviso to section 153(2) of the Act is ONE YEAR from the end of the financial year in which the notice under section 148 of the Act was issued. Such time limit to pass asst. order ends by 31.03.2022. However, the assessment order is passed on 25.05.2022, which is barred by limitation. The Appellant inadvertently did not notice the above legal issue and therefore could not raise the above before the authorities below. 2. The Appellant submits that the limitation as prescribed under section 153(2) of the Act for passing an assessment under pursuant to reopening of an assessment is ONE YEAR from the end of the financial year in which the assessment is reopened. It is submitted that 153(4) extends the said time-limit by another 12 months notwithstanding anything contained in sub-ss. (1), (1A), (2), (3) and (3A) where a reference under section 92CA(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the additional grounds raised by the assessee are purely legal in nature and challenges the assessment order passed by the Assessing Officer on limitation in light of sec.153(2) of the Act. Therefore, respectfully following the decision of Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd., vs. CIT (supra), we admit the additional grounds raised by the assessee in the instant appeal and proceed to adjudicate the same on merits. 8. Learned Counsel for the Assessee submitted that that the instant additional grounds raised by the assessee are squarely covered by the order of the ITAT, Hyderabad B-Bench, Hyderabad in the case of Shri Mir Ibrahim Ali, R/o.USA vs. The ACIT, Intl. Taxation-1, Hyderabad in ITA.Nos.69 and 91/Hyd./2024 and ITA.Nos.92 and 93/Hyd./2024 dated 29.11.2024 wherein the Tribunal held the extended period of 12 months is not available in the case of Non-Resident as per sec.153(4) of the Act and, therefore, the Assessing Officer has to complete the assessment as per the provisions of sec.153(2) of the Act which is one year from the end of financial year in which notice u/sec.148 was served. Since in the instant appeal the Assessing Officer iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have complete the assessment as per the provisions of sec.153(2) of the Act which is one year from the end of the financial year in which notice u/sec.148 was served. Since in the case of the assessee who is a Non-Resident during the impugned A.Ys. 2013-2014 and 2014- 2015, the Assessing Officer has completed the assessment on 25.05.2022 beyond the period of one year from the end of the financial year in which notice issued u/sec.148 dated 29.03.2021, therefore, the assessment order passed by the Assessing Officer cannot be sustainable in the eye of law. 11. On identical facts and circumstances, in the case of Shri Mir Ibrahim Ali, R/o.USA vs. ACIT, Intl. Taxation-1, Hyderabad (supra), the Tribunal has quashed the assessment vide order dated 29.11.2024 and the relevant observations of the Tribunal are as under : "16. We have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The assessee is a non-resident individual for the A.Y 2016-17 and is an eligible assessee as per section 144C(15)(b) of the I.T. Act, 1961. As per section 144C of the Act, the assessment of an eligible assessee shall be dealt with in acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n other words, except in a cases of reference to the TPO, extended time limit of 12 months for completion of assessment is not available even in a case of Non-Resident assessment, even though the said assessment proceedings is covered u/s 144C of the Act. Since the extended time limit of 12 months is not available in the case of Non- Resident as per section 153(4) of the Act, in our considered view, the Assessing Officer ought to have completed the assessment as per the provisions of section 153(2) of the Act which is one year from the end of the financial year in which notice u/s 148 was served. In the present case, if we go by date of notice issued u/s 148 of the Act i.e. 29.03.2021 and probable service in the month of April, 2021, the time limit for completing the assessment u/s 147 was available up to 31.03.2023 and thus, the final assessment order passed by the Assessing Officer u/s 147 r.w.s. 144C(13) dated 08.01.2024 is clearly barred by limitation. 18. The assessee has relied upon the decision of ITAT, Hyderabad Bench in the case of Syed Gulam Mohiuddin (supra), wherein the Coordinate Bench of the Tribunal has considered an identical issue and after considering relevant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r completion of assessment or re-assessment shall be 12 months from the end of the financial year in which notice u/s 148 was served. However, sub-section (4) of section 153 extends the said time limit by another 12 months notwithstanding anything contained in subsection (1), (1A), (2), (3) and (3A) where a reference u/s 92CA)(1) is made during the assessment proceedings to the TPO. In other words, except the cases of the reference to the TPO, extended time limit of 12 months for completion of assessment is not available even in a case of Non-Resident assessment, even though the said assessment proceedings is covered u/s 144C of the Act. Since the extended time limit of 12 months is not available in the case of Non- Resident as per section 153(4) of the Act, in our considered view, the Assessing Officer ought to have completed the assessment as per the provisions of section 153(2) of the Act which is one year from the end of the financial year in which notice u/s 148 was served. In the present case, if we go by date of notice issued u/s 148 of the Act i.e. 30.03.2021, the time limit for completing the assessment u/s 147 was available up to 31/03/2022 and thus, the final assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be made under section 143 or section 144 at any time after the expiry of twenty-one months from the end of the assessment year in which the income was first assessable: Provided that in respect of an order of assessment relating to the assessment year commencing on the 1st day of April, 2018, the provisions of this sub-section shall have effect, as if for the words "twenty-one months", the words "eighteen months" had been substituted: [Provided further that in respect of an order of assessment relating to the assessment year commencing on the- (i) 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "twenty-one months", the words "twelve months" had been substituted; (ii) 1st day of April, 2020, the provisions of this sub-section shall have effect, as if for the words "twenty-one months", the words "eighteen months" had been substituted: Provided also that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2021, the provisions of this subsection shall have effect, as if for the words "twenty-one months", the words "nine months" had been substituted.] (1A) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer u/s 147 r.w.s. 144C(13) of the Act dt.08.01.2024 for the A.Y. 2016-17. 11.1. Since the additional grounds raised by the assessee in the instant appeal are squarely covered by the aforesaid decision of the Hyderabad Tribunal in the case of Shri Mir Ibrahim Ali, r/o. USA (supra), and in absence of any contrary material brought to the notice of Bench by the learned DR, we quash the assessment order passed by the Assessing Officer and allow the additional grounds raised by the assessee. Accordingly, the "lead" appeal of the assessee ITA.No.833/Hyd./2024 for the assessment year 2013-2014 is allowed. 12. Same order to follow in ITA.No.834/Hyd./2024 for the assessment year 2014-2015. Accordingly, ITA.No.834/Hyd./ 2024 of the assessee is allowed. 13. Coming back to the assessee's appeals for the assessment years 2013-2014 and 2014-2015 in ITA.Nos.823 & 824/Hyd./2024, the Assessing Officer levied the penalty u/sec.271(1)(c) of the Act for these assessment years in the hands of the assessee on account of concealment of particulars of income. 14. We note that since we have allowed the quantum appeals [ITA.Nos.833 & 834/Hyd./2024] filed by the assessee hereinabove, the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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