UNITED SPIRITS LTD. vs. DCIT,

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ITA 1641/BANG/2013Status: DisposedITAT Bangalore17 October 2016AY 1996-974 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if section 153(2A) applies to orders passed under section 104, there is no reason why it should not apply to orders passed under sections 201(1) and 201(1A). Therefore, the orders passed by the AO were time-barred.

What were the facts?

The assessee filed appeals against orders passed by the AO under sections 201(1) and 201(1A) of the Income Tax Act. The assessee contended that these orders were barred by limitation as per section 153(2A) of the Act.

What were the issues?

The key issue was whether orders passed under sections 201(1) and 201(1A) are subject to the limitation period prescribed under section 153(2A) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 153(2A),Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, BANGALORE BENCH ‘B’, BANGALORE

Before: SHRI S.K.YADAV & SHRI A. K. GARODIA

For Appellant: Shri Nageshwar Rao, Advocates
For Respondent: Shri AR. V. Sreenivasan, JCIT

per Ground No. 3 that the order passed by the A.O. is barred by limitation in so far as it is against the provisions of section 153 (2A) of the Act.

4.

Learned AR of the assessee placed reliance on the judgment of Hon’ble Rajasthan High Court rendered in the case of CIT vs. Jodhan Real Estate Development Corporation Pvt. Ltd. as reported in 273 ITR 195. Learned DR of the revenue supported the order of CIT (A).

5.

We have considered the rival submissions. We find that as

per learned CIT (A), the provisions of section 153 (2A) does not apply to orders passed u/s 201 (1) and 201 (1A). The facts are undisputed that the impugned orders passed by the A.O. on 30.03.2011 u/s 201 (1) and 201 (1A) were passed to give effect to the tribunal order dated 16.11.2006 as noted by the A.O. himself in first Para of his orders. As per the provisions of section 153 (2A), the orders are time barred and hence, we have to decide this aspect only as to whether the provisions of section 153 (2A) are applicable to orders passed u/s 201 (1) and 201 (1A). Learned CIT (A) has held that the provisions of section 153 (2A) does not apply to orders passed u/s 201 (1) and 201 (1A). It is noted by him in Para 3.2 of his order that as per the A.O., section 153 (2A) of the Act applies to to 1644(Bang)/2013 Page 3 of 4 only orders enumerated therein and does not cover orders passed u/s 201 (1) and 201 (1A). Learned CIT (A) has reproduced the provisions of section 153 (2A) and since section 201 is not refereed therein, he confirmed the assessment order on this aspect. In the light of these facts, now we examine the applicability of the judgment of Hon’ble Rajasthan High Court rendered in the case of CIT vs. Jodhan Real Estate Development Corporation Pvt. Ltd. (Supra). We find that in that case, fresh order passed u/s 104 was also in dispute as time barred and the tribunal held in that case that it is time barred and this tribunal order was upheld by Hon’ble Rajasthan High Court. We are of the considered opinion that if section 153 (2A) is applicable to order passed u/s 104 then there is no reason or basis to hold that it is not applicable to order passed u/s 201 and 201 (1A). Accordingly, by respectfully following this judgment of Hon’ble Rajasthan High Court rendered in the case of CIT vs. Jodhan Real Estate Development Corporation Pvt. Ltd. (Supra), we hold that all these orders passed by the A.O. u/s 201 and 201 (1A) are time barred. Hence these are quashed.

6.

In view of our above decision, other grounds raised by the assessee do not require any adjudication. to 1644(Bang)/2013 Page 4 of 4

7.

In the result, all these four appeals of the assessee are allowed.

Order pronounced in the open court on the date mentioned on the caption page.

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