INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Order framed beyond period of limitation -

Assessee-company challenged re-assessment order on the ground of limitation alleging that the said order allegedly framed on 31-3-2016 was served on 18-8-2016 i.e., by delay of 140 days. Held: It is settled position that order of any authority cannot be said to be passed unless it is in some way pronounced or published or the party affected has the means of knowing it. It is not enough if the order is made, signed, and kept in the file, because such order may be liable to change at the hands of the authority who may modify it, or even destroy it, before it is made known, based on subsequent information, thinking of change of opinion. To make the order complete and effective, it should be issued, so as to be beyond the control of the authority concerned, for any possible change or modification therein. This should be done within the prescribed period, though the actual service of the order may be beyond that period. In instant case, reassessment order allegedly framed on 31-3-2016 was served on 18-8-2016, i.e., by delay of 140 days; such reassessment would not be sustainable being framed beyond the stipulated time limit period.

Relied:ACIT, Circle-50 (1), Kolkata v. Sunil Agarwal [I.T.A Nos.1194/Kol /2017, Cross Objection No.10/Kol/2019, dt. 28-2-2019]

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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