2021 (3) TMI 1419

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.... (in short 'DCIT/AO') for the assessment years 2013-14 & 2014- 15 vide orders dated 16.10.2017 & 16.10.2018 under section 143(3) read with section 144C (13) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). 2. The assessee in both the years i.e. in both the appeals has raised various grounds on merits and also additional grounds. We also noted that the additional grounds raised are identical and particularly, ground No.8 which is regarding time barring of assessment in both the years. Hence, we will take the facts from AY 2013-14 and ground also and will adjudicate the issue, which will apply to other year i.e. AY 2014-15 also. 3. At the outset, the learned counsel for the assessee stated that first of all the Bench ....

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....d that the additional ground arises from the order of the Assessing Officer and there is no requirement for adjudication of any new facts. Hence, he requested that in view of the decision of Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383 (SC), the matter may be admitted. 5. When this fact was pointed out, the learned Sr. DR on behalf of the Revenue argued that this ground is primarily raised on the fact that the Assessing Officer has not proposed any variation to the returned income and therefore, the provision of Section 144C(1) of the Act do not apply. It is the case of the assessee that in such a situation the Assessing Officer should have issued the final assessment order under section 1....

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....RP. But the learned Sr. DR has not opposed the admission of additional ground. 6. The learned counsel for the assessee Mr. PJ Pardiwala, stated the fact that on perusal of assessment proceedings for relevant assessment year 2013-14 there is no proposed variation in the income or losses reported by the assessee to the Income Tax authority. The matter before the Assessing Officer was only with respect to the rate of tax chargeable on the interest income earned by the assessee. 7. We noted that the draft assessment order was issued on 29.12.2016 under section 143(3) read with section 144C(1) of the Act and in that eventuality, finally the assessment order was passed on 16.10.2017. From the above, we find that there is no dispute that if ther....

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....he provisions of Section 144C(1) could not have been invoked in this case, the time limit of completion of assessment was available only upto 31st December 2017. The mere issuance of draft assessment order, when it was legally not required to be issued, cannot end up enhancing the time limit for completing the assessment under section 143(3). We, therefore, uphold the plea of the assessee on this point as well. The impugned assessment order is indeed, in our considered view, time barred. We, accordingly, hold so. 8. As the impugned assessment order itself is held to be time barred, all other grievances raised in appeal, which deal with the merits of stand taken by the Assessing Officer in the assessment order, are rendered academic and i....