Case Law Details
ACIT Vs Essel Corporate Resources Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that assessment order passed u/s 143(3) beyond time limit prescribed under section 153 of the Income Tax Act is time barred and bad in law.
Facts- The assessee filed its return of income on 29.09.2012 declaring a loss of Rs.1,99,11,429/-. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 on 30.03.2016 determining total income of the assessee at Rs 4164,62,52,690/- after making various additions/ disallowances.
However, the ld. CIT(A) disposed of the appeal by setting aside the assessment order on the ground that the order ought to have been passed before 31.03.2015 and since the assessment order was passed beyond that date, the assessment is barred by limitation.
Conclusion- We hold that assessment order passed u/s. 143(3) of the Income Tax Act in the case of the assessee ought to be passed on or before 12.09.2015 in view of the provisions of section 153(1) read with Explanation 1 and proviso to the said explanation. The assessment order, having been passed on 30.03.2016 is clearly beyond the time limit of 12.09.2015 and hence we have no hesitation to conclude that the assessment order is time barred and bad in law.
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