AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 854
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....29- 07-2013 could not have proceeded with reassessment proceeding since proceeding further with reassessment proceedings without the direction of Hon'ble Gujarat High Court would amount to contempt of Court." 2. "On the facts and in the circumstances of the case, the learned CIT(A) erred in the law and on facts in annulling reassessment order by relying on the decision of Hon'ble Allahabad High Court in the case of CIT vs. Chandra Bhan, 46 taxmann. 108 (All.) and decision of Hon'ble I.T.A.T. Mumbai in the case of Dilip Dahanukar vs. ACIT reported in 90 ITD 525 without taking note of the fact that till the date preceding the date of receipt of Hon'ble Gujarat High Court's order dated 29.07.2013, in S.C.A. No. 2966 of 2013, the A.O. was unaware of the fact that stay on finalizing assessment was vacated." 2. The facts of the case are that assessee is a Pharma Company listed in BSE/NSE. It is engaged in manufacturing of bulk drugs as well as formulation products. The assessee filed original return of income [ E Return] for A.Y. 2006-07, declaring total income of Rs. (-) 40,85,09,332/- under normal provisions and book profit u/s. 115JB of Rs. 83,47,52,785/- on 2....
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....time and thus same annulled. 7. Against the order of the ld. CIT(A), revenue has come before us in an appeal. 8. We have gone through the relevant record and impugned order . Ld. A.R. vehemently relied on the order of the ld. CIT(A) and stated that he has passed detailed and reasoned order and same should not be disturbed. In order to understand the time limit, we reproduced the below table of the notice served u/s. 148 and subsequent date of the orders: Sr. No. Particulars Dates 1 Date of issuing notice u/s 148 30/03/2012 2 Date on which notice u/s 148 was served on the Appellant 30/03/2012 3 Stay order passed by the Gujarat High Court against Writ Petition filed by the Appellant 18/03/2013 4 Final order passed by the Gujarat High Court and stay vacated against Writ Petition filed by the Appellant 29/07/2013 5 Assessment order passed by the Assessing Officer u/s 143(3) r.w.s. 147 27/02/2015 9. As we can see, notice u/s. 148 was served on the assessee on 30th March 2012, the reassessment order u/s 147 ought to be passed by the Assessing Officer by 31st March 2013 i.e. one year from 31st March 2012 i.e. the end of the financial year in which....
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.... order is less than sixty days it will be extended to sixty days. The relevant extract is produced herein below: "Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), 65[(1A), (IB),] 66[(2), (2A) and (4)] available to the Assessing Officer for making an order of assessment, 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:" Thus based on the above, the Assessing Officer ought to have passed the order by 27th September 2013. 12. But ld. A.O. passed the assessment order 143(3) r.w.s. 147 on 27.02.2015. 13. In support of its contention on similar facts and circumstances in assessee's own case for A.Y. 2005-06 ld. A.R. filed a copy of the Co-ordinate Bench wherein Co-ordinate Bench dismissed the appeal of the Revenue with following observations: 4.2. The appellant during the course of the appellate proceeding Jias made following submissions in this regard: "Ground No. 3: Assessment order passed u/s. 143 rws 147 is outside....
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....it Petition filed by the Appellant * Assessment order passed by the Assessing Officer u/s 143(3) r.w.s. 147 3. Section 153 states the time limits for completion of assessments and reassessments. Sub-section 2 of 153 reads as under "No order of assessment, reassessment or recomputation shall be made under section 147 after the expiry of one year from the end of the financial year in which the notice under section 148 was served" 4. Since the notice u/s 148 was served on the Appellant on 30th March 2012, the reassessment order u/s 147 ought to be passed by the Assessing Officer by 31st March 2013 i.e. one year from 31st March 2012 i.e. the end of the financial year in which the notice is served. 5. However, the Appellant had filed a Civil Petition application dated 8th March 2014 against the validity of the said notice before the Honourable Gujarat High Court on 12th March 2013. Subsequently, the Honourable Gujarat High Court vide oral judgement order dated 18th March, 2013 had issued directives to the respondent i.e. the Assessing Officer that it may continue with the assessment but final order pursuant to the impugned notice shall not be passed without the leave of t....
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.... sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly:" Thus based on the above, the Assessing Officer ought to have passed the order by 27th September 2013. The whole working is summarised as under: Sr. No. Particulars Dates 1. Date of issuing notice u/s 148 30/03/2012 2. " Date on which notice u/s 148 was served on the Appellant 30/03/2012 3. End of the Financial Year in which the notice was served 31/03/2012 4 One /ear from the end of the Financial Year in which notice was served - Time limit given for Assessing Officer to pass order u/s. 147 (as per section 153(2)) 31/03/2013 5 Stay order passed by the Gujarat High Court against Writ Petition filed by the Appellant 18/03/2013 6 Final order passed by the Gujarat High Court and stay vacated against Writ Petition filed by the Appellant 29/07/2013 7 Number of days which will be excluded in computing the time limit (As per expl 1 to sec 153(4)) [6- 5] 134 8 Da ys remaining for AO to complete the assessment after HC order [4 - 5] 13 9 Since the time remaining is less than 60 days, time period is extended to 60 days [As per proviso to Exp....
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....(A) is based upon orders of the ITAT, wherein the Tribunal has considered scope of Explanation (1)(ii) to section 153(1) of the Income Tax Act. This Explanation has fallen for consideration before the Hon'ble High Allahabad Court and while considering this explanation, the Hon'ble high Court has observed as under: "The aforesaid writ petitions having been dismissed on 01/8/1995, as per proviso to Explanation 1 to Section 153, the assessment was to be completed by 30/9/1995, but in the present case the assessment was completed on 04/1/1996 i.e. beyond 30/9/1995. The submission ITA No.1688/Ahd/2015 of Shri Shambhu Chopra, learned counsel appearing for the Revenue to save the assessment from being beyond the period of limitation is that the period of 60 days is to be computed from the date of communication of the order. He submits that the order of the High Court dated 01/8/1995, dismissing the writ petitions could be received by the office of the ACIT (Investigation) on 18/12/1995. There are two reasons due to which the said submission cannot be accepted. Firstly, the order of the High Court dated 01/8/1995, dismissing the writ petitions was passed in the presence of the l....