Assessment quashed under Section 153A as beyond deadline, appeals dismissed, assessee objections allowed.

The Tribunal quashed the assessment under section 153A due to limitation, finding it invalid as the assessment order was passed beyond the statutory deadline. Consequently, the department's appeals were dismissed, and the assessee's cross objections were allowed. Other issues raised were not addressed on merit as the assessment was invalidated on the grounds of limitation.

---

---

Issues Involved:
1. Legality of assessment under section 153A/143(3) of the Income Tax Act, 1961.
2. Correctness of the assessment order by the assessing officer.
3. Validity of the department's appeal against the CIT(A)'s decision.
4. Justifiability of computing trading income without apportioning administrative expenses.
5. Inclusion of interest income in the computation of exemption under section 80IA of the Act.
6. Bar on the assessment made under section 153A due to limitation as per section 153B of the Income Tax Act.

Issue-wise Detailed Analysis:

1. Legality of Assessment under Section 153A/143(3):
The assessee contended that the assessment framed under section 153A/143(3) was not legal as no incriminating material was found during the search, and revisiting settled issues was not permissible. The Tribunal admitted the additional ground raised by the assessee, stating that it was a purely legal issue that went to the root of the matter and did not require fresh investigation.

2. Correctness of the Assessment Order by the Assessing Officer:
The assessee argued that the assessment order was vulnerable on both facts and law, necessitating correction by the CIT(A) in the interest of justice. The Tribunal did not provide specific findings on this issue as the assessment was quashed on the ground of limitation.

3. Validity of the Department's Appeal:
The department's appeal was considered bad in law as it ignored issues decided by the Apex Court, which had become the law of the land. The Tribunal did not address this issue separately as the assessment was quashed on the ground of limitation.

4. Justifiability of Computing Trading Income:
The assessee claimed that the assessing officer arbitrarily computed trading income without apportioning administrative expenses attributable to such income. The Tribunal did not address this issue separately due to the quashing of the assessment on the ground of limitation.

5. Inclusion of Interest Income in Computation of Exemption under Section 80IA:
The assessee argued that the lower authorities erred in adding interest income derived from deposits made for obtaining bank guarantees to the computation of exemption under section 80IA. The Tribunal did not provide specific findings on this issue as the assessment was quashed on the ground of limitation.

6. Bar on Assessment Made under Section 153A Due to Limitation:
The Tribunal found that the assessment made under section 153A was barred by limitation as per section 153B of the Income Tax Act. The search was conducted on 21.03.2007, and the assessment was required to be completed by 31.12.2008. However, the assessment order was passed on 24.12.2009, making it invalid. The Tribunal relied on the decision in the case of J. H. Finvest Pvt. Ltd., which belonged to the same group, to support its conclusion.

Conclusion:
The Tribunal quashed the assessment framed under section 153A as it was barred by limitation. Consequently, the appeals filed by the department were dismissed, and the cross objections filed by the assessee were allowed. The Tribunal did not address other issues raised by the department or the assessee on merit due to the quashing of the assessment on the ground of limitation.

---