TaxTMI 
TaxTMI 
2023 (5) TMI 874
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....of separate assessment orders passed by the Assessing Officer under section 143(3)/ 147 of the Income Tax Act, 1961 (in short 'the Act'). 2. At the outset, we note that appeal filed by the assessee in the case of M/s Nobal Jewels Pvt. Ltd. in ITA No.350/SRT/2022 for A.Y. 2017-18 is barred by limitation by one day. The Ld. Counsel for the assessee has explained that actually, it is not a delay in filing the appeal; it is rather a mistake in computing the days of delay, hence there is no question for condonation of delay. 3. We have heard both the parties on this preliminary issue and noted that while computing the delay, the date on which appeal has been filed, has not been excluded. We are of the view that the date on which appeal has been filed by the assessee, should not be included in computing the delay in filing the appeal, the reason being on said date the appeal has reached to the Registry of the Tribunal. Therefore, if the date of filing is excluded than there is no delay in filing this appeal. Hence, having regard to the reasons given by the Ld. Counsel for the assessee, we find that there is no delay in filing this appeal and therefore we admit the appeal for adjudicati....
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.... are without prejudice to any other: 1.0 On facts and circumstances of the case and in law, the assessment order passed u/s 143(3) dated 30/09/20021 is bad-in-law, since it had been passed beyond the limitation period specified u/s 153(1) of the Act. The appellant craves leave to add, amend, alter, and/or withdraw any of the grounds of appeal at the time of hearing." 7. Shri Prakash Jhunjhunwala, Learned Counsel for the assessee, at the outset, begins by pointing out that assessee has raised an additional ground stating that assessment order passed u/s 143(3) dated 30/09/20021 is bad-in-law, since it had been passed beyond the limitation period specified u/s 153(1) of the Act. Since the assessee has raised the technical and legal ground challenging the validity of assessment/reassessment orders passed u/s 143(3)/147 of the Act, which goes to the root of the matter, therefore such additional ground raised by the assessee should be admitted and adjudicated first. 6. On the other hand, Learned CIT-DR for the Revenue has objected that since the assessee has not raised this additional technical ground, challenging assessment / re-assessment proceedings before the lower authorities....
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.... in the original grounds of appeal, is purely a legal issue and all facts are already on record which goes to the root of the matter and no further inquiry is required for deciding the same as all facts are already on record. Therefore, in the light of ratio laid down by the Hon'ble Supreme Court in the case of National Thermal Power Company Ltd., vs. CIT (1998) 229 ITR 382 (SC), we admit the legal ground No.1 raised by the assessee, for adjudication. 11. Since the legal/technical ground No.1 raised by the assessee goes to the root of the mater therefore, first we shall adjudicate the said ground. 12. Shri Prakash Jhunjhunwala, Learned Counsel for the assessee, argued on legal/technical ground No.1 taking the "lead" case in ITA No.351/SRT/2022, for A.Y. 2017-18 and submitted that assessee filed return of income u/s 139(1) of the Act on 06.10.2017. Thereafter a notice u/s 143(2) was served by Assessing Officer on 27.02.2018. The Ld. Counsel stated that time limit for completion of assessment u/s 153(1) was within 21 Months from the end of the assessment year in which the income was first assessable, that is, on 31.12.2019. In other words, the time limit for passing the assessm....
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....time after the expiry of twenty-one months from the end of the assessment year in which the income was first assessable: [Provided that in respect of an order of assessment relating to the assessment year commencing on the 1st day of April, 2018, the provisions of this sub-section shall have effect, as if for the words "twenty-one months", the words "eighteen months" had been substituted: Provided further that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "twenty one months", the words "twelve months" had been substituted.] 1.2 For counter argument for the additional grounds of appeal filed by the assessee, it is to enunciated that the Govt. of India published Gazette of India in the title of 'THE TAXATION AND OTHER LAWS RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT 2020 No.38 of 2020. By publishing this Gazette, certain dates were specified in section 3(1) of this Gazette. In this it was clearly mentioned that any time-limit has been specified in, or prescribed or notified under the specified Act which falls during the peri....
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....ncome u/s 139(1) 06.10/2017 Notice u/s 143(2) served 27/09/2018 Time limit for completion of the assessment u/s 153(1) (within 21 months from end of assessment year in which the income was first assessable) 31/12/2019 Assessment order passed u/s 143(3) 30/09/2021 Therefore, assessment order framed by the Assessing Officer is non est in the eye of law, hence liable to be quashed. 15. We have examined these above narrated facts with help of copy of Income Tax Return (ITR) filed before us for A.Y. 2017-18, u/s 139(1) of the Act, wherein it is mentioned that ITR was filed by assessee u/s 139(1) on 06.10.2017. We have examined the notice under section 143(2) of the Act, dated 27.09.2018, issued by the Assessing Officer, which is placed in paper book page-2 filed by the assessee. We have also examined the assessment order framed by the Assessing Officer u/s 143(3) of the Act on 30.09.2021 (vide intimation letter for order u/s 143(3) dated 01.10.2021, which is placed at page-3 of the paper book filed by the assessee). We note that as per section 153(1) of the Act, the time limit for completion of assessment u/s 153(1) of the Act was within 21 months from the end of assessment yea....
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....on of India that every step should be taken to ensure that levy and collection of the taxes is strictly in accordance with law - not only substantive one but the procedural law, as well. 18. Time limit is laid down for dealing with the return of income filed by an assessee. The time limit for completion of assessment u/s 153(1) of the Act, in the assessee`s case is within 21 months. In the assesee`s case the assessment was not framed/passed by the Assessing Officer within 21 months from the end of the assessment year in which the income was first assessable, that is, on 31.12.2019. The Assessing Officer should follow the time limit prescribed under the Act, otherwise assessment order passed by him will not be recognized in the eye of law. Why the time limit in the Income Tax Act is so necessary? This is to ensure finality to all matters. Purpose behind time limit laid down in various provisions are: (i) To promote Repose. In the context of limitation of actions, "repose" includes at least four distinct but overlapping concepts: (a) to allow peace of mind; (b) to avoid disrupting settled expectations; (c) to reduce uncertainty about the future; and (d) to reduce the cost of measu....