2008 (9) TMI 13

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....ax Act, 1961. The Commissioner, Income Tax invoking the provisions of Section 263 of the said Act passed an order on 25.3.2004 setting aside the said assessment order and directing the Assessing Officer to calculate taxable income according to the merchantile system of accounting. The Commissioner of Income Tax gave a specific direction that the Assessing Officer shall pass the consequential orders "within a period of three months approximately". The assessee being aggrieved by this order passed by the Commissioner, Income Tax preferred the said appeal before the Tribunal. When the appeal came to be heard by the Tribunal on 13.11.2007, the learned counsel for the assessee pointed out that the Assessing Officer had not framed any assessment....

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.... period of limitation has been prescribed for passing orders consequential to the order passed by the Commissioner Income Tax under Section 263. She submitted that the period of limitation that has been prescribed by virtue of Section 153(2A) only relates to cases where the entire assessment order has been set aside and a fresh assessment has been directed by the Commissioner in exercise of his powers under Section 263 of the said Act. She submits that to this extent the Tribunal has gone wrong in agreeing with the assessee that the appeal had become infructuous because no assessment order was framed within the time limit for framing such an order.  Having heard counsel for the parties, we are of the view that the order passed by the T....