In a significant case the Mumbai bench of Income Tax Appellate tribunal (ITAT) has recently upheld the quashing time -barred scrutiny assessment order passed under Section 143(3) of the Income Tax Act, 1961.
Madhur Aggarwal, appeared for revenue. Manoj Kumar appeared for assessee.
The above appeal was filed by the revenue against the order of Commissioner of Income Tax (Appeals).
Assessee Essel Corporate Resources Pvt. Ltd filed its return of income on 29.09.2012. Thereafter the assessment was completed under Section 143(3) of the Income Tax Act on 30.03.2016 determining total income of the assessee at Rs 41, 64,62,52,690/- after making various additions and disallowances. Aggrieved assessee filed appeal before CIT(A).
CIT(A) disposed of the appeal by setting aside the assessment order. The ground for that the order was passed before 31.03.2015 and since the assessment order was passed beyond that date, the assessment is barred by limitation.
Against the order revenue filed an appeal before the tribunal.
While the proceedings of appeal were underway, revenue filed various details from time to time in the form of paper books and letters duly signed by the present AO having jurisdiction over the assessee.
The tribunal observed that “assessment order passed under Section 143(3) of the Income Tax Act in the case of the assessee ought to be passed on or before 12.09.2015 in view of the provisions of section 153(1) read with Explanation 1 and proviso to the said explanation. The assessment order, having been passed on 30.03.2016 is clearly beyond the time limit of 12.09.2015 and hence we have no hesitation to conclude that the assessment order is time barred and bad in law”
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