ACIT Vs Shelf Drilling Ron Tappmeyer Ltd. Etc (Supreme Court of India)
Supreme Court held that time consumed for concluding the proceeding u/s. 144C of the Income Tax Act has to be subsumed within the limitation prescribed u/s. 153 (3). If orders are not made within the time stipulated u/s. 153(3), then there would be no final assessment order and the return as filed by the assessee would have to be accepted.
Facts- In the present cases, the respondents in the first batch of cases being non-resident assessees engaged in the business of exploration in terms of Section 44BB of the Income Tax Act, 1961, are eligible assessees within the meaning of Section 144C.
The issue which arises in these appeals is the interpretation to be given to Section 144C in light of Section 153 of the Act. The question which falls for consideration is on the applicability of Section 153 to a proceeding u/s. 144C of the Act namely, whether the period of eleven months as envisaged u/s. 144C of the Act should be over and above the limitation period prescribed, particularly, u/s. 153(1) or (3), as the case may be. In other words, whether the time consumed for concluding the proceeding u/s. 144C has to be subsumed within the limitation prescribed u/s. 153(1) or (3) or as the case may be.
