2020 (8) TMI 619

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..... COUNSEL, A/W SRI. B.S. BALACHANDRAN AND SRI. ANKUR PAI, ADVS.)   COMMON JUDGMENT ALOK ARADHE J., I.T.A.No.166/2011 under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) has been preferred by the revenue, whereas, I.T.A.No.148/2011 has been preferred by the assessee. Since, both the appeals arise out of common order passed by the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal', for short) and on account of similarity of substantial questions of law involved in these appeals, they were heard together and are being decided by this common judgment. I.T.A.No.148/2011 pertains to the Assessment years 2000-01 to 2002-03, whereas, I.T.A.No.166/2011 pertains to Assess....

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....vernment of Karnataka undertaking, which is constituted under the Bangalore Water Supply and Sewerage Act, 1964 to make provision for supply, sewerage and the sewage deposited in Bangalore Metropolitan Area and matters connected therewith. The assessee implemented and commissioned Cauvery Stage - I, II and III water supply projects and in order to meet the growing demand for water, the assessee envisaged a project called 'Cauvery Stage - IV' to draw 270 litres of water per day from Cauvery River. In order to get the benefit of consultancy services of International Standards, the assessee floated global tenders and contract for Stage - I project was awarded to a Consortium, consisting of two companies and an agreement was executed on 29.11.1....

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....ellate Tribunal. The Tribunal by an order dated 04.01.2011 inter alia held that period of limitation for initiating proceedings under Section 201(1) and 201(1A) of the Act is four years from the end of relevant Assessment years, where the tax deducted is less than Rs. 1 Lakh and if it is more than Rs. 1 Lakh the period of limitation would be six years. The Tribunal accordingly directed the Assessing Officer to verify the period of limitation in the aforesaid case and where the limitation of the proceeding is after six years from the end of relevant Assessment years, the said proceedings were held to be quashed. In the aforesaid factual background, the assessee as well as revenue have approached this court by filing these appeals. 7. Lear....

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....eeding under Section 201(1) and 201(1A) of the Act. It is not in dispute that for the relevant Assessment years i.e., 2000-01 to 2002-03, the proceedings were initiated after a period of four years. The aforesaid issue is no longer res integra. The Supreme Court in BHATINDA DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD., (supra) has held as follows: 18. Insofar as the Income-Tax Act is concerned, our attention has been drawn to S.153(1)(a) thereof which prescribes the time limit for completing the assessment, which is two years from the end of the Assessment year in which the income was first assessable. It is well known that the Assessment year follows the previous year and, therefore, the time limit would be three years from the ....