TaxTMI 
TaxTMI 
2008 (3) TMI 39
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.... on the facts and circumstances of the case, the ITAT was right in upholding the finding of the Ld. CIT(A) quashing the assessment framed under Section 143(3)/147 by interpreting the main Section 153 (2) of the Income Tax Act, 1961 by reading the proviso in such a manner so as to ascribe a particular meaning to the main provision without appreciating that the proviso only gives an exemption/different interpretation in case a particular circumstance exists and since in the instant case, the notice u/s 148 was not served on a date between 1.4.1999 and 1.4.2000, the proviso is not attracted and is irrelevant to the interpretation of ambit in Section 153 (2) of the Income Tax Act, 1961? 2. Whether on the facts and circumstances of the ....
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....e, the same should be quashed. It was contended that under section 153(2), the assessment proceedings have to be completed within one year from the end of the financial year in which the notice under section 148 was served. It was pointed out that the notice was served on the assessee on 11.01.2001, which is a day which fell before 01.06.2001 and, therefore, in such a case, the assessment ought to have been completed on or before 31.03.2002. Since it was completed only on 14.02.2003, the assessment, it was contended was beyond the period of limitation 4. The Commissioner of Income Tax (Appeals) held that since section 153(2) was amended with effect from 01.06.2001 to reduce the time limit available for completion of the asses....
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.... the Act as it stood before the amendment and so the assessment made on 14.2.2003 was well in time. 7. However, on the other hand, Mr. Sanjay Bansal, Sr. Advocate has argued that the Tribunal was right in holding that the assessment was beyond the period of limitation as in the case of the assessee, notices which were served before 1.6.2001 were not protected or saved by proviso to sub section (2) of Section 153 of the Act which was substituted simultaneously on 1.6.2001 and the period of two years was applicable on the notices issued between 1.4.1999 to 31.3.2000 as has been provided in the proviso to Section 153 (2) of the Act and not on the notices served after 1.4.2000 and before 1.6.2001 i.e. the date when Section 153(2)....
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....d between 1.4.1999 and 31.3.2000, meaning thereby that the amended proviso enlarges the period available to the Assessing Officer for completion of the assessment from one year, as available under amended sub-section (2) of Section 153 of the Act, to, two years, where notices under Section 148 were served during such period and the assessment could be completed up to 31.3.2002. Thus, only in such cases where notices have been served between 1.4.1999 and 31.3.2000, the Assessing Officer can avail the time limit of two years from the end of financial year in which notices were served. If the contention of the Department is accepted that even after 1.6.2001, the limit available for completing the assessment would be governed by the law prevale....