TaxTMI 
TaxTMI 
2019 (8) TMI 401
X X X X Extracts X X X X
X X X X Extracts X X X X
....9;ble ITAT Lucknow in the case of Sandeep Jam Vs ITO, Ward 1(4), Kanpur in ITA 811/LKW/2017 (b) Decision of Hon'ble ITAT Lucknow in the case of Smt Neelam Gupta Vs ITO [2007] 110 TTJ 714 (Lucknow) (c) Decision of Hon'ble ITAT Jaipur Bench in the case of Ramesh Chand Soni HUF Vs ITO [2018] 89 Taxmann.com 71 (Jaipur-Trib) (d) Decision of Hon'ble ITAT Indore bench in the case of Shri Narayandas Tolani Vs ITO 3(1) Bhopal in ITA 834/Ind/2016. In this case, under similar circumstances the Hon'ble ITAT Indore expunged and deleted the 'Direction' under section 150(1) of the Income ax A4, 1961 and held as under: "14. in view of Section 150(2) of the Act, the provisions of sub section (1) of Section 150 of the Act is not applicable in respect of the assessment year in which the assessment, reassessment or recomputation could not have been made at the time of order, which was subject matter of appeal passed by reason of any other provisions limiting the time within which the action for reassessment or recomputation should be taken. Th. e provision of Section 149 of the Act provides that notice under section 148 can be issued....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 150 while the time limit for completion of such proceedings are mentioned in sub Section (2) & (3) of Section 153 just as Section 150 is the proviso to Section 149, sub Section (3) of Section 153 is a proviso to sub section (2) thereof. We find that the plain language of sub-section (2) of Section 150 clearly restricts the application of sub-section (1) of Section 150 to enable the authorities to reopen the assessments which have not already be become final on the expiry of the period of limitation prescribed u/s 149(2) of the Act. 15. In the light of above discussion in respect of provisions of Section 150(1) and (2) of the Act and relying on various judicial pronouncements as relied on by the ld. Authorized Representative of the assessee as well as discussed as above by us and the decision of Jurisdictional High Court in the case of Computer Science Corporation India (P) Limited (supra), we are of the considered opinion that the directions issued by the ld. CIT(A) u/s 150(1) of the Act for the assessment years 2004-05 to 2006-07 are barred by limitation legally and not permissible considering the facts of the present case. Accordingly, the same are directed to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) (ii) of the Act, it is now well settled that it must be an express direction necessary for the disposal of the case before the authority or court. It must also be a direction which the authority or court is empowered to give while deciding the case before it." 3. That the reassessment proceedings consequent to aforesaid illegal 'Direction' by the Ld. CIT(A)-II, Kanpur will result in illegal reassessment proceeding and multiplicity proceedings and litigation. Such multiplicity of proceedings and litigation will result in k of precious manpower/efforts/time/financial resources of government officials and appellant. Under these circumstances, it is humbly prayed that the reassessment proceedings directed so be initiated by ACIT-1, Kanpur may please by Stayed till disposal of appeal before Hon'ble ITAT in ITA No. /LKW/2019. It is further prayed that said appeal before your honours may be fixed at an early date. Reliance is placed on following judgments and decisions: (a) Decision of Hon'ble ITAT Indore in the case of M/s Radhishwari Developers Pvt Limited Vs PCIT-II Indore in SP No./67/Ind/201 8 (Arising out of ITA No. 493/Ind/201 8) (b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act were initiated. Vide order (APB: 18-20) dated 19/3/2014, passed under sections 143(3)/147 of the Act, the A.O disallowed the assessee's claim under section 80P of the Act. The assessment was completed at a total income of Rs. 26,38,100/-. 5. The ld. CIT(A), vide order (APB: 21-22) dated 21/11/2017, dismissed the assessee's appeal ex-parte qua the assessee. 6. The Tribunal, vide order (APB: 23-25) dated 19/9/2018, remanded the matter to the file of the ld. CIT(A), to be decided afresh on affording due opportunity of hearing to the assessee. The ld. CIT(A), vide order dated 2/5/2019, i.e., the impugned order, annulled the assessment order, holding as under: "5.2 The undersigned has carefully gone through the assessment order, written submissions and verbal arguments of the Ld. A.R. of the appellant. The main objection of the appellant for challenging the proceedings u/s 147 is that no action shall be taken u/s 147 after the expiry of four year from end of the relevant AY, unless any income chargeable to tax has escaped assessment for such AY by reason of the failure on the part of the assesses to make a return or to disclose fully and truly all material facts nece....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y had submitted the complete details on all the issues during the original assessment. No material in this regard was suppressed by the appellant and at the same time no incorrect disclosure in that regard was made by it. The above disclosure was well within the knowledge of the Assessing Officer during the regular assessment proceedings. 5.4 After considering the facts of the case of the appellant as narrated above, and arguments placed by the learned AR of the assesses , the undersigned is of the considered view that the A.O. had no jurisdiction to issue notice u/s 148 and to recomputed the income of the appellant u/s. 143(3) & u/s. 147 of the Act. Therefore, issue of notice u/s. 148 assessment by ITO-4(1), Kanpur is ab-initio invalid and bad in law, hence the assessment order is hereby annulled. As the assessment order is annulled, the other grounds of appeal are not adjudicated and treated as infructuous." 7. However, while annulling the assessment order, as above, the ld. CIT(A) issued the following direction to the jurisdictional A.O: "5.5 Even though, assessments in present appeal has been annulled on legal ground, undersigned is of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The order passed by the ld. CIT(A) is dated 2/5/2019. Section 150 of the Act relates to cases where assessment is in pursuance of an order on appeal, etc. According to section 150(1) of the Act, a notice under section 148 may be issued at any time for the purpose of making an assessment in consequence of or to give effect to any finding or direction contained in an order passed on appeal. Section 150(2) of the Act, however, provides that the provisions of section 150(1) of the Act shall not apply in any case where any such assessment, made in consequence of an appellate order relates to an assessment year in respect of which an assessment could not have been made at the time the order, which was the subject matter of the appeal, was made, by reason of any other provision limiting the time within which any action for assessment may be taken. Section 149 of the Act lays down the time limit for issuance of notice under section 148 of the Act. In accordance with section 149(1)(b) of the Act, if four years, but not more than six years have elapsed from the end of the relevant assessment year, and if the income chargeable to tax which has escaped assessment amounts to one lakh rupees or....