INCOME TAX ACT, 1961

Section 153(2A)

Assessment - Limitation - Assessment whether, time barred -

Assessee-firm was engaged in Transport business and filed return of income for three years. In the assessment completed for all the 3 assessment years, additions were made to the total income of assessee on account of inflation of expenses, disallowance under section 40A(3), unexplained investments in purchase of trailer and other additions. However, CIT(A), who by orders gave partial relief to assessee. Tribunal set aside the orders of CIT(A) and remanded for fresh consideration by AO. After the order of Tribunal, AO completed the order of assessment in all the three assessment years on 30-12-2011. Assessee contended that order of assessment dated 30-12-2011 passed by AO was barred by time as per the provisions of section 153(2A). Held: It was undisputed that order of assessment was despatched by AO only on 9-1-2012 and that the last date of limitation for passing the order of assessment, pursuant to the directions of Tribunal in all the three assessment years was 31-12-2011 as relying on Maharaja Shopping Complex v. The Dy. CIT, Circle-1 (2) in (ITA No. 832/2008, dt. 14-10-2014) orders of assessment have to be held as barred by time and all the orders of assessment were therefore liable to be annulled.

Relied:M/s. Maharaja shopping complex v. The Dy. CIT, Circle-1 (2) in (ITA No. 832/2008, dt. 14-10-2014) CIT v. Subrata Roy in (Income Tax Appeal No. 47 of 2013, dt. 21-3-2014) Government Wood Works v. State of Kerala (1988) 69 STC 62 (Ker-HC) : 1968 TaxPub(DT) 251 (Ker-HC) Laxmidas And Co. v. CIT, Bombay. (1969) 72 ITR 88 (Bom-HC) : 1969 TaxPub(DT) 268 (Bom-HC) Viswanathan Chettiar (Rm. PR.) v. CIT (1954) 25 ITR 79 (Mad-HC) : 1954 TaxPub(DT) 36 (Mad-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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