Case Law Details
TNS India Private Limited Vs Union of India (Telangana High Court)
Conclusion: The proceedings drawn, admittedly being beyond a period that was prescribed under sub-section (2A) of Section 153 and the consequential orders passed were all beyond the period of limitation prescribed under sub-section (2A) of Section 153 hence, the same being not sustainable, deserved to be and was accordingly set aside/quashed.
Held: The contention was as to whether the consequential order could have been passed by AO beyond the prescribed period of time as was envisaged under Section 153 (2A) and whether after a remand was made by Tribunal while allowing an appeal in part, the consequential order that need to be passed would be one under Section 153(2A) or would be under Section 153(3). It was held that a plain reading of the aforesaid statutory provisions of law, particularly sub-section 2A of Section 153, it would clearly indicate that there was a specific time limit envisaged in the said sub-section for completion of the assessment, reassessment or re-computation. What was also apparently evident was that subsection (2A) itself was enacted with a clear intention of fixing a time limit for the order of fresh assessment to be passed in respect of matters which arise on account of an order under Section 250, 254, 263 or Section 264 of the Income Tax Act. Assessee categorically contended that the proceedings in the instant case having been passed after a considerable period of time and the time limit was also lapsed as was required under sub-section (2A) of Section 153. From plain reading of the judicial pronouncements and precedents in the preceding paragraphs and the findings given by this Court, the proceedings drawn, admittedly being beyond a period that was prescribed under sub-section (2A) of Section 153 and the consequential orders passed were all beyond the period of limitation prescribed under sub-section (2A) of Section 153. Hence, the same being not sustainable, deserved to be and was accordingly set aside/quashed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
The challenge in these two writ petitions are the consequential orders dated 20.04.2018 issued by the respondent No.3/The Deputy Commissioner of Income Tax-2 under Section 254 read with Section 143 of the Income Tax Act, 1961, (for short the “Act”) for the assessment year 2006-2007 and the impugned rectification order dated 12.10.2018 issued by the respondent No.2/The Assistant Commissioner of Income Tax under Section 154 of the Act for the same assessment year. For convenience, W.P.No.853 of 2019 is taken up, so far as the facts are concerned.
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