Case Law Details
Pentamedia Graphics Limited Vs ACIT (Madras High Court)
Facts- The order is challenged by the assessee on account of period of limitation under section 153(2) of the Income Tax Act. Assessee argued that the period of limitation, prescribed under Section 153 (2), to pass an order of re-assessment expired on 12.10.2014. However, the impugned order of re-assessment, under Section 143 (3) read with Section 147 of the Act, was passed by the respondent/assessing authority, on 21.10.2014 i.e., beyond the period of limitation and thus, the impugned orders are liable to be set aside.
Conclusion- Held that mere filing of an appeal before the High Court or Hon’ble Supreme Court would not preclude the competent authorities from exercising their powers, which is otherwise conferred under the provisions of the Act. Unless any interim order or otherwise is communicated to the authorities, they are bound to proceed under the provisions of the Act, in the manner known to law and therefore, mere filing of the case before the Hon’ble Supreme Court is not a ground to raise that the petitioner was not afforded with opportunity.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The relief sought for in these Writ Petitions are to set aside the orders of assessment dated 21.10.2014 with reference to two Assessment Years 2005-06 and 2006-07. The petitioner is a Company registered under the provisions of the Indian Companies Act, 1956. The petitioner is engaged in the development of computer software and exports the same to various parts of the globe. The petitioner filed return of income and the same was scrutinised and the petitioner submitted all the documents, books of accounts, etc., and the assessing authority, having satisfied, passed the orders of assessment.
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