Case Law Details
CIT Vs Amar Nath Arora (Rajasthan High Court)
Notice was issued under section 158BC on 29-10-1999 according to the provisions of section 158BE, the period of two years would start from 28-2-1999 from the end of the month in which the search was carried out. Therefore, assessment ought to have been passed before 28-2-2001. However, in the interregnum period , the assessing officer had ordered to furnish the audit report as required under sub-section (2A) of section 142 on 18-1-2001 which was required by the assessee on 23-1-2001. The audit report was submitted by the assessee on 17-7-2001.
Therefore, the questions which came for the consideration is as to whether the order of the assessment which has been passed on 24-8-2001 is time barred or not.
Sub-clause (ii) appended with Explanation 1 to section 158BE uses the word direct, which is required to be interpreted, or according to clause (ii), the period between the date, on which the assessing officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section, is to be excluded.
It cannot be disputed that the period of exclusion will commence from the day on which the assessing officer gives a direction under section 142(2A) and would end on the day when the assessee furnishes such audit report. According to us, the date of issuance of the notice (i.e., 18-1-2001) is the day on which the assessing officer had taken a decision to get the books audited, when such decision is conveyed to the assessee then only it results into direction. A purpose of interpretation of clause (ii) above, read with the decision of the Hon’ble Supreme Court (supra) would mean, the date on which the decision/notice is served on the assessee.
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