TaxTMI 
TaxTMI 
2025 (8) TMI 1525
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...., learned counsel appearing for the respondent. 2. This writ appeal, filed under Section 4 of the Karnataka High Court Act, 1961, by the Revenue, is directed against the order dated 17.08.2023 passed in W.P. No. 13953/2020 (T-IT). 3. The facts, in brief, are that, the respondent-assessee, filed its return of income for the assessment year 2007-08. The Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act' for short) on 31.12.2009 assessing the tax payable. Aggrieved by the said assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) ['CIT(A)'], which came to be dismissed by order dated 06.10.2010. Being further aggriev....
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....t, reassessment or recomputation could be made at any time. The amended sub-section (3) of Section 153 introduced by the Finance Act, 2016 is not applicable to the present case in view of sub-section (9) of the said provision. As per sub-section (9) of Section 153, inserted by the Finance Act, 2016, the assessment pursuant to an order of remand by the Tribunal shall be governed by the provisions as they stood immediately prior to the commencement of the Finance Act, 2016. Therefore, by virtue of sub-section (9), the amended provisions, including sub-section (7) of Section 153 brought in by the Finance Act, 2016, are inapplicable to the present case. 6. Smt. Tanmayee Rajkumar, learned counsel appearing for the respondent-assessee, submits....
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....unal's order was issued on 06.11.2020. The aforementioned dates are not in dispute. 10. The reliance placed by the Revenue on sub-section (3) of Section 153, as it stood prior to the Finance Act, 2016, is misplaced for more than one reason. Sub-section (3) is expressly made subject to the provisions of sub-section (2A). Sub-section (2A) governs cases where an order of fresh assessment is to be made in pursuance of an order of the Tribunal setting aside or cancelling an assessment. It prescribes a period of limitation of one year from the end of the financial year in which the order of the Tribunal is received by the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner, as the case may be. 11. On th....
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.... examine the applicability of sub-sections (5) and (6) to the present case. 13. Sub-section (5) of Section 153 mandates that the Assessing Officer shall give effect to the order of the Tribunal within a period of three months, in cases where such effect is to be given otherwise than by making a fresh assessment or reassessment. In the present case, the direction issued by the Tribunal is to make a fresh assessment. Hence, sub-section (5) is not applicable. 14. Sub-section (6) of Section 153 mandates that where an assessment, reassessment, or recomputation is to be made in consequence of, or to give effect to, any finding or direction contained in an order of the Tribunal, such action shall be completed within a period of twelve months....
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....efore 31.03.2017. If sub-section (9) is invoked to accept the contention of the Revenue, it would render sub-section (7) otiose and would defeat the very object and purpose of the amendment as set out in the CBDT's Memorandum. 17. The contention of the Revenue that the direction of the Tribunal can be given effect to at any time, in terms of subclause (ii) of sub-section (3) of Section 153, is without merit and finds no justification. Section 153(1) prescribes the limitation period for passing an order of assessment. The maximum time limit, as applicable during the relevant period, was two years from the end of the assessment year. Similarly, in cases where assessment, reassessment, or recomputation is to be made under Section 147 of the....