ACIT, NOIDA vs. M/S. NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY, NOIDA

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ITA 2211/DEL/2014Status: DisposedITAT Delhi31 May 2017AY 2003-045 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the decision of the CIT(A) that the assessment order was barred by time. The period of stay granted by the Allahabad High Court was correctly excluded, but the assessment was still passed beyond the revised limitation.

What were the facts?

The Revenue appealed against an order holding the assessment order as null and void due to being time-barred. The assessment order was passed on December 9, 2011, which was beyond the prescribed limitation period.

What were the issues?

Whether the assessment order was passed within the limitation period prescribed under Section 153(1) of the Income Tax Act, considering the period of stay granted by the High Court.

Which sections of the Income-tax Act were involved?

Section 153(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, [ DELHI BENCHES: “E” NEW DELHI ]

Before: SHRI I. C. SUDHIR & SHRI PRASHANT MAHARISHI

For Appellant: Ms. Raj Rani Lakra, C. A.; &, Ms. Priyhanka Garg, C.A
For Respondent: Shri H.K. Choudhary, CIT [DR];
Hearing: 31.05.2017Pronounced: 31.05.2017

The appeal has been preferred by the Revenue against the first appellate order, holding the assessment order as null and void as time barred.

2.

Considering the arguments advanced by the parties, we find that as per the provisions of section 153(1) of the Act, the assessment order for the assessment year under consideration was to be passed by 31.03.2006. Undisputedly, the assessment proceedings were stayed by the Hon’ble Allahabad High Court in Writ Petition (Writ Tax No.1338 of 2005 preferred by the assessee) and the stay remained in operation from 29.09.2005 to 28.02.2011, thus, there is again no dispute that the period of stay of 5 years and 5 months will have to be excluded from normal limitation period and accordingly the assessment orders should have been passed by 31.08.2011. The Assessing Officer has, however, passed the assessment order on 9.12.2011, which is almost 3 months beyond the limitation period as prescribed by the provisions of section 153(1) of the Act. The ld. CIT (A) has thus, rightly held that the assessment order in question was barred by time limit as prescribed under section 153(1) of the Act. The same is upheld. The grounds are accordingly rejected.

3.

In result, appeal is dismissed.

4.

The order is pronounced in the Open Court on : 31.05.2017.

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