DCIT Vs Dharampal Premchand Ltd. (ITAT Delhi)
ITAT Delhi held that assessment order passed by AO under section 153C read with section 143(3) of the Income Tax Act is passed beyond prescribed time limited. Hence, the order barred by limitation is liable to be quashed.
Facts- The assessee is in the business of software publishing consultancy and supply. A search and seizure operation was carried out in the case of Maconns, Meenu and Yadav Singh Group, Noida on 27.11.2014. The assessee company is incorporated on 01.04.2007 with 10000 shares held equally by Namrata Manocha and Shri Rajendra Manocha. Notice u/s 153C was issued on 18.06.2015 and the assessee e-filed its return of income declaring a total loss of Rs.42,52,242/-. The assessment u/s 153C of the Act r.w.s 143(3) of the Act was passed on 28.08.2017 inter alia making additions towards cash credit u/s. 68; disallowance of interest and addition of difference of receipts.
CIT(A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that in this case as no valuation report was received by the AO, the AO was not entitled for any extension of limitation period as claimed by him. Therefore, in the given facts of the case, the limitation date for passing the assessment order expired on 31.12.2016 and consequently, the assessment order passed by the AO u/s 153C r.w.s. 143(3) of the Act dated 28.08.2017 is barred by limitation and the same is quashed. Thus, we have held the assessment order barred by limitation and quashed the assessment order, the other grounds in the CO and the grounds of appeal filed by the Department becomes academic in nature and requires no adjudication. In the result, the appeal of the Revenue is dismissed, whereas the cross objection of the assessee is partly allowed.
