TaxTMI 
TaxTMI 
2018 (9) TMI 115
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....or short) deciding cross appeals, ITA Nos. 4882/Del/2013 and 4870/Del/2013 relating to the Assessment Year 2008-09. 2. The impugned order holds that the draft assessment order dated 09.08.2012, passed by the Assessing Officer under Section 144C read with Section 143 (3) of the Act, was invalid as it was passed beyond the prescribed statutory period. Accordingly, the final assessment order dated 17.06.2013 passed by the Assessing Officer on the directions of the Dispute Resolution Panel has been held to be void and invalid. 3. By order dated 12.03.2018, the following substantial question of law was framed in the present appeal:- "Did the ITAT fall into error in interpretation of the proviso to Explanation I (iii) {sic. (iv)} to Section 15....
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....order was 6 days, the Assessing Officer was entitled to pass the draft assessment order on or before 21.08.2012 in terms of first proviso of Explanation 1 to Section 153 of the Act. Accordingly, it is submitted that the draft assessment order passed on 09.08.2012 was within limitation. 7. The Tribunal vide the impugned order on interpretation of the said provisions has held that the clause (iv) to Explanation 1 and the first proviso would not apply as the special audit report was received after 31.12.2011. The Tribunal observed that "the time limits under section 153 are sacrosanct and are to be strictly followed unless an exception has been provided in the section for the extension of the same. Meaning thereby that even in cases where a r....
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....sessment, reassessment or recomputation, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly." 9. Clause (iv) of Explanation 1 to Section 153 of the Act states that the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited and ending with the last date on which the assessee is required to furnish a report of such audit, shall be excluded for computing the period of limitation. Thus clause (iv) to Explanation 1 clearly states that the period from the date when the Assessing Officer directs the special audit till the last date of furnishing such report under....
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....s. Accordingly the time for assessment would be extended to provide for a minimum period of sixty days to complete the assessment. Ulike Promoters P. Ltd. holds :- "The proviso quoted above has an object and purpose. It stipulates that the Assessing Officer should have a minimum period of 60 days to complete the assessment, in case after exclusion of period under the Explanation, the period for completing the assessment is less than 60 days. Every time this situation occurs, the proviso comes into play and has to be applied. The proviso can come into operation on one, two or more occasions in the same assessment/reassessment proceedings. In the present case, the respondent assessee had filed a writ petition. Because of the stay order passe....
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.... the Supreme Court in VLS Finance Limited and Another vs. Commissioner of Income Tax and Another, (2016) 384 ITR1 (SC), in which it was held as follows;- "The assessing officer had, after going through the matter, formed an opinion that there was a need for special audit and the report of special audit was necessary for carrying out the assessment. Once such an opinion was formed, naturally, the assessing officer would not proceed with the assessment till the time the special audit report is received, inasmuch as in his opinion, report of the special audit was necessary. Take a situation where the order of special audit is not challenged. The assessing officer would naturally wait for this report before proceeding further. Order of special....