TaxTMI 
TaxTMI 
2025 (12) TMI 1582
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.... to as the "Ld. CIT(A)" under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") arising out of order dated 28.03.2022 under Section 143(3) r.w.s. 144B of the Act for assessment Year 2019-20. 2. Brief facts of case are that assessee filed original income tax return on 30.11.2019 declaring total income of Rs. 202,42,24,480/- and later on revised return under Section 139(5) of the Act, declaring income of Rs. 1,99,74,55,920/- on 29.09.2020. The case was selected for complete scrutiny under CASS on following issues: i) Increase in TDS in Revised Return ii) Claim of Any Other Amount Allowable as Deduction in Schedule BP iii) Reduction of Income in Revised Return & Claim of Refund ....
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....oner of Income-tax (Appeals) [CIT(A)] confirming the additions/disallowances made by the Ld. AO vide the order passed under section 250 of the Income Tax Act, 1961 (the Act) is bad in law. Ground 2: On the facts and circumstances of the case & in law, the Ld. CIT(A) erred in confirming the addition of Rs. 3,84,625 on account of gain on foreign exchange fluctuation relating to capital assets, which was duly reduced from the cost of assets in accordance with the provisions of section 43A of the Act. Ground 2.1: On the facts and circumstances of the case & in law, the CIT(A) erred in not appreciating that the gain on foreign exchange fluctuation relates to capital assets and accordingly, is capital and not revenue in nature. ....
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....and a nullity being barred by limitation. 6. On the facts and circumstances of the case & in law, the assessment order dated 28 March 2022 passed under section 143(3) read with section 144B of the Act by the Ld. AO is bad in law and barred by limitation in view of the provisions of Section 153 of the Act." 6. Learned authorized Representative for the appellant/assessee submitted that Ld. CIT(A) failed to appreciate that pertinently, the assessment for the impugned assessment year i.e. AY 2019-20 ought to have been completed before the end the twelve months from the end of the assessment year in which the income was first assessable i.e., by 31 March 2021 as per the provisions of section 153(1) of the Act as reproduced hereinabov....
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....ceeding within the period of limitation as mandated under section 153(1) of the Act and not afterwards. Whereas, in the instant case, the Ld. AO has referred the matter to the Ld. TPO much after the expiry of aforesaid timelines i.e., 30 September 2021. 6.3 Therefore, the said reference having been made beyond the permissible time limit is invalid, bad in law and void-ab-initio. As a consequence, the assessment order passed under section 143(3) read with section 144B of the Act on 28 March 2022 is invalid, barred by limitation and liable to be quashed. 6.4 Reliance is placed on the judgement of Hon'ble Madras High Court in the case of Virtusa Consulting Services (P.) Ltd. v. Dispute Resolution Panel, [2022] 139 taxmann.com 361 (Ma....
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.... further proceedings, in furtherance of the same are also bad. In the present case, because of a reference after the permissible period, the time line has been missed by the department at every stage. Therefore, the appellant is entitled to succeed in the appeal." 7. Learned authorized Representative for the Revenue submitted that Ld. AO in response to notice, additional ground of appeal nos. 5 & 6 in letter dated 13.09.2025 stated as under: "5. On the facts and circumstances of the case & in law, the Ld. Ao grossly erred in making a reference under section 920A(3) of the Income-tax Act, 1961 (the Aot') on 28 January 2022 when the relevant assessment proceedings already stood time barred as per section 153 of the Act and thu....