Limitation for final assessment orders under sections 144C and 153 must be read together; delayed orders were quashed.

For assessees covered by section 144C, limitation for passing the final assessment order must be computed by reading section 144C(13) with section 153. The Tribunal treated the two provisions as mutually inclusive and overlapping for limitation purposes, and on the undisputed chronology found that the final assessment orders were passed after the applicable due dates. The assessment orders were therefore held barred by limitation and quashed, with the appeals succeeding on the jurisdictional issue and the remaining grounds left undecided.

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Issues: Whether the final assessment orders passed under section 144C(13) of the Income-tax Act, 1961 were barred by limitation when read with section 153 of the Income-tax Act, 1961.

Analysis: The Tribunal examined the dates of the draft and final assessment proceedings in all eight appeals and considered the competing views on the interplay between sections 144C and 153. It followed the legal position that these provisions are mutually inclusive and overlapping for the purpose of computing limitation for passing the final assessment order. On the undisputed chronology, the final orders were passed after the due dates computed under section 144C(13) read with section 153. The Tribunal therefore held that the assessment orders could not survive on limitation.

Conclusion: The final assessment orders were barred by limitation and were quashed, in favour of the assessees.

Final Conclusion: The appeals succeeded on the jurisdictional issue of limitation, and the impugned assessment orders were set aside without adjudication of the remaining grounds.

Ratio Decidendi: For eligible assessees covered by section 144C, limitation for the final assessment order must be computed by reading section 144C(13) with section 153, and an order passed beyond the applicable combined time limit is void.

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