INCOME TAX ACT, 1961

Section 153(1)

Assessment - Time limit - Revenue seeking extension on account of reference made to Valuation Officer under section 55A or section 50C -

Question arose for consideration was whether period of two years as prescribed in section 153(1) for completion of assessment could be extended in view of Explanation (1) to section 153(1) in case reference was made to Valuation Officer under section 55A or section 50C.Held: Section 153(1) clearly states that assessment has to be completed within two years from the end of assessment year in which income was first assessable or one year from the end of financial year in which return or revised return related to assessment year commencing on first day of April, 1980 or any earlier assessment year is filed under sub-section (4) or sub-section (5) of section 139 whichever is later. Explanation 1 sub-clause (iv) of section 153 provides an extension from above two years where AO makes a reference to Valuation Officer under sub-section (1) of section 142A and does not talk about extension of time if reference is made under section 55A or section 50C. Therefore, assessment order passed beyond two years was barred by limitation.

REFERRED : Saheb Ram Om Prakash Marketing (P) Ltd. v. CIT W. P. (C.) No. 815 of 2017, (2017) 398 ITR 292 (Del) : 2017 TaxPub(DT) 4144 (Del-HC).

FAVOUR : In assessee's favour.

A.Y. : 2013-14

SUBSCRIBE FOR FULL CONTENT