Court sets aside orders due to procedural irregularities, assessment order nullity, appeal successful.

The court allowed the appeal, setting aside the orders passed by the Assessing Officer, First Appellate Authority, and the Income Tax Appellate Tribunal. The challenge to the assessment order, which was passed beyond the prescribed period under Section 153(1)(a) of the Income Tax Act, was successful. The court held that the assessment order, being passed without jurisdiction due to the violation of the statutory provision, was a nullity. The procedural irregularities in passing the assessment order beyond the prescribed period rendered all further proceedings infructuous, emphasizing that any decision on merits in such a situation would be of no consequence.

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Issues:
Challenge to assessment order passed beyond the prescribed period under Section 153(1)(a) of the Income Tax Act.

Analysis:
The appeal was filed against the order passed by the Income Tax Appellate Tribunal, Lucknow Bench, rejecting the appeal of the assessee-appellant against the order dated 23.8.05 passed by the Commissioner of Income Tax (Appeals)-I, Kanpur. The challenge was based on the argument that the assessment orders were passed beyond the period of two years, as prescribed under Section 153(1)(a) of the Income Tax Act. The main question of law raised was whether the assessment order itself, passed without jurisdiction, is a nullity due to the violation of the statutory provision. The timeline of events leading to the assessment order was detailed, highlighting the procedural irregularities in passing the assessment order beyond the prescribed period. The judgment referred to a previous case to emphasize that if an assessment is barred by time, any decision on merits would be of no consequence, rendering all further proceedings infructuous. Based on the facts and legal position presented, the court held that the order passed by the Assessing Officer, First Appellate Authority, and the Income Tax Appellate Tribunal were liable to be set aside. Consequently, the appeal was allowed, and the mentioned orders were set aside.

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