Assessing Officer loses jurisdiction to pass fresh assessment orders after Section 153 limitation period expires

Delhi HC held that assessment orders pursuant to Tribunal orders dated 21.11.2014 and 29.05.2015 became time-barred under Section 153 of the Income Tax Act. The court found that regardless of whether the old provision Section 153(2)(A) or amended Section 153(3) applied, the limitation period had expired, rendering the Assessing Officer without jurisdiction to pass fresh assessment orders. Following precedents in Nokia India and Aricent Technologies cases, the court allowed the writ petition and directed the AO to accept the petitioner's return of income for assessment years 1998-99 to 2009-10.

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Issues involved:
The judgment involves issues related to the expiration of limitation under Section 153 of the Income Tax Act, 1961 for passing fresh assessment orders, the validity of the notice issued by the Assessing Officer, and the jurisdiction of the court to quash assessment proceedings for assessment years 1998-99 to 2009-10.

Expiration of Limitation for Assessment Orders:
The petitioner approached the court as the limitation under Section 153 of the Income Tax Act had expired after orders passed by the Tribunal. The court noted that the Tribunal remanded the matter to the Assessing Officer (AO) for fresh consideration for multiple assessment years. The petitioner contended that the AO could not pass a fresh assessment order due to the expiration of limitation.

Validity of Notice Issued by AO:
The AO issued a notice to the petitioner on 19.07.2018 for representation regarding assessment years 1998-99 to 2009-10. The petitioner responded by stating that the limitation for passing the assessment order had expired. Despite this, the AO did not drop the proceedings, leading the petitioner to move the court through a writ petition.

Jurisdiction of the Court to Quash Assessment Proceedings:
The court analyzed the amendments made to Section 153 of the Act and the timeline for passing fresh assessment orders based on the dates of Tribunal orders served on the petitioner. The court found that the AO lacked jurisdiction to pass assessment orders for the mentioned assessment years. Consequently, the court allowed the prayers made in the writ petition, quashing the assessment proceedings and directing the AO to accept the return income for the relevant years.

Separate Judgment by the Judges:
The judgment was delivered by Hon'ble Mr. Justice Rajiv Shakdher and Hon'ble Mr. Justice Girish Kathpalia. The court granted the prayers made in the writ petition, declaring the assessment proceedings as time-barred and directing the AO to accept the return income for the specified assessment years. The writ petition was disposed of accordingly, and the interim order was vacated.

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