Tribunal Allows Appeals for 2015-16 and 2016-17; Declares Assessment Orders Time-Barred Under Section 153(1) of IT Act.

The Tribunal allowed the assessee's appeals for the assessment years 2015-16 and 2016-17, admitting additional legal grounds without requiring fact investigation. It affirmed its jurisdiction to consider these grounds based on the SC's precedent. The Tribunal found the assessment orders were passed beyond the statutory limitation period under Section 153(1) of the Income Tax Act, rendering them time-barred. Consequently, the Tribunal allowed the appeals, rendering other issues moot, and pronounced the decision in open court on 25/09/2023.

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Issues Involved:
1. Admission of additional grounds of appeal.
2. Jurisdiction of the Tribunal to admit additional grounds of appeal.
3. Limitation period for passing assessment orders under Section 143(3) read with Section 144C of the Income Tax Act, 1961.

Summary:

Issue 1: Admission of Additional Grounds of Appeal
The assessee filed appeals against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2015-16 and 2016-17, seeking the admission of additional grounds of appeal. The Tribunal admitted the additional grounds, noting they were purely legal issues that did not involve any investigation of facts, referencing the Supreme Court decision in National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383 (SC).

Issue 2: Jurisdiction of the Tribunal to Admit Additional Grounds of Appeal
The Tribunal cited the Supreme Court's ruling in Jute Corporation of India Ltd. v. CIT [1991] 187 ITR 688, which established that appellate authorities have all the powers of the original authority in deciding questions before them. The Tribunal confirmed its jurisdiction to examine questions of law arising from the facts found by lower authorities and having a bearing on the tax liability of the assessee.

Issue 3: Limitation Period for Passing Assessment Orders
The assessee argued that the assessment orders for the years 2015-16 and 2016-17 were barred by limitation. The Tribunal examined the sequence of events and noted that the final assessment orders were passed beyond the statutory period allowed under Section 153(1) of the Income Tax Act. The Tribunal referred to its own decision in the case of ACIT vs. SA Chitra Ventures Ltd. and the ITAT Mumbai's decision in IPF India Property Cyprus (No. 1 Ltd.), concluding that the assessment orders were indeed time-barred.

Conclusion:
The Tribunal held that the assessment orders for both years were barred by limitation and allowed the additional grounds raised by the assessee. Consequently, all other issues raised in the appeals became academic and infructuous. The appeals of the assessee were allowed, and the order was pronounced in the open court on 25/09/2023.

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