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.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Both appeals by Revenue are filed against the separate orders of Learned Commissioner of Income Tax (Appeals)-12, Mumbai [“Ld. CIT(A)”, for short], dated 03/04/2017 and 07/03/2017 for Assessment Years 2012-13.
2. The revenue has raised the following grounds in both the appeals:-
ITA No.4322/Mum/2017
“1. On the facts and circumstances of case and in law, the Ld. CIT(A) erred in rejecting application u/s 154 without giving opportunity to the A.O.
2. On the facts and circumstances of case and in the law, the Ld. CIT(A) erred in rejecting the application u/s 154 of the act, filed by the A.O. holding that there is no mistake apparent from the record.
3. The Appellant prays that the order of the CIT(Appeals) on the above grounds be set aside and that of the AO be restore.
4. The Appellant craves leave to amend or alter any ground or to submit additional new ground, which may be necessary.”
ITA No.3317/Mum/2017
“1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in holding that the assessment completed on 31.03.2016 is beyond the time limit prescribed in section 153(1)(a) of the Act, without considering the fact a reference u/s 90 of the Act was made by the Assessing Officer hence the time limit to pass the assessment order was extended by a year t0o 31.03.2016.
2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not providing opportunity to the Assessing Officer through A.O. had specifically asked for the same vide letter dated 25.01.2017 to Ld. CIT(A).
3. The Appellant prays that the order of Ld. CIT(A) on the above grounds be set aside and that of the AO be restored.
4. The Appellant craves leave to amend or alter any ground or to submit additional new ground, may be necessary.”
3. We have heard the rival submissions and perused the materials available on record. 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 (hereinafter referred to as the „Act‟)on 30.03.2016 determining total income of the assessee at Rs 4164,62,52,690/- after making the following additions / disallowances:
