M/S METROPOLITAN ENGINEERS CO-OPERATIVE SOCIETY LTD.,NADIA vs. CIT-14, KOLKATA, NADIA

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ITA 829/KOL/2015Status: DisposedITAT Kolkata19 January 2018AY 2010-20114 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the AO failed to pass the consequential order within the time limit stipulated by Section 153(2A) of the Income Tax Act, the appeal filed by the assessee had become infructuous.

What were the facts?

The assessee filed an appeal against an order passed by the CIT under Section 263. The Tribunal noted that the Assessing Officer (AO) had not passed any order giving effect to the CIT's directions within the prescribed time limit.

What were the issues?

Whether the appeal is infructuous due to the non-passing of a giving effect order by the AO within the statutory time limit after a Section 263 order.

Which sections of the Income-tax Act were involved?

Section 263,Section 153(2A)

AI-generated summary — verify with the full judgment below

1.

This appeal by the assessee against the order dated 30.03.2015 passed by the CIT-14, Kolkata for assessment year 2010-11 u/s 263 of the Act. M/s Metropolitan Engineers Co-operative Society Ltd. 1

2.

At the time of hearing on 24-10-2017, it was noticed that the impugned order was passed on 30.03.2015 u/s 263 of the Act. We directed Ld. AR and Ld.DR to find out whether the AO passed order giving effect to directions of the CIT u/s 263 and posted the matter for hearing on 26-10- 2017. On 26.10.2017, the Ld. AR submitted that so far the assessee did not receive any notices from AO in giving effect proceedings and no order whatsoever received till now. The Ld. DR submitted that no such order was passed by the AO in pursuance of the directions of CIT. Therefore, we proceed to dispose off the mater by taking into consideration the submissions of the both the AR’s and by perusing material available on record.

3.

Heard the rival submissions and perused the material available on record. The period of limitation to pass giving effect order in pursuance of 263 proceedings is contemplated under Section 153 of the Act and the sub- section (2A) to Section 153 is read as under:

Section - 153, Income-tax Act, 1961-2014

Time limit for completion of assessments and reassessments. 153. (1) … (a) ; or (b), whichever is later : Provided : Provided further — (i) ; or (ii), 96[Provided also .] (1A). (1B). (2): Provided : Provided further : Provided also — ITA No. 829/Kol/2015

M/s Metropolitan Engineers Co-operative Society Ltd. 2

(i); or (ii), : 97[Provided also .] (2A) Notwithstanding anything contained in sub-sections (1), (1A), (1B) and (2), in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment in pursuance of an order under section 250 or section 254 or section 263 or section 264, setting aside or cancelling an assessment, may be made at any time before the expiry of one year from the end of the financial year in which the order under section 250 or section 254 is received by the 98[Principal Chief Commissioner or] Chief Commissioner or 98[Principal Commissioner or] Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the 98[Principal Chief Commissioner or] Chief Commissioner or 98[Principal Commissioner or] Commissioner: Provided : 98[Provided further : Provided also — (i) ; or (ii),: 1[Provided also .] (3)— (i) [***] (ii) ; (iii). (4). Explanation 1.—— (i), or (ii), or (iia), or* 2[(iii)— (a); or (b)] (iv), or (iva), or (v), or (vi) , or (vii), or 5[(viii),] 6[or] (ix) 7[***]

4.

The sub-section (2A) of Section 153 of the Act provides the period for passing fresh assessment in pursuance of an order u/s section 263 at any time before the expiry of one year from the end of financial year in which the order u/s 263 passed. We find that the order u/s 263 was passed on 30-

M/s Metropolitan Engineers Co-operative Society Ltd. 3 03-2015. Thus, the AO should have passed giving effect order in pursuance of an order u/s section 263 within one year from the end of financial year i.e. on or before 31-03-2016. We note from the submissions of both Ld. AR and Ld. DR that no such consequential order was passed by the AO till 31- 03-2016.Consequently, this appeal filed by the assessee has become infructuous as rightly submitted by the Ld.AR and the same is liable to be dismissed.

5.

In the result, the appeal of the assessee is dismissed.

Order pronounced in the open Court on 19-01-2018.

Sd/- Sd/- P.M.Jagtap S.S. Viswanethra Ravi Accountant Member Judicial Member Date: 19-01-2018 Copies to : (1) Appellant/Department: M/s Metropolitan Engineers Co-operative Society Ltd. (2) Respondent/Assessee: CIT-14, Kolkata (3)Commissioner of Income-tax (Appeals) (4) Commissioner of Income Tax, Kolkata (5) The Departmental Representative (6) Guard File

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