DCIT Vs Silverleaf Infrastructure Pvt Ltd (Chhattisgarh High Court)
The Chhattisgarh High Court dismissed the Revenue’s appeal under Section 260-A of the Income Tax Act, 1961, holding that no substantial question of law arose from the order of the Income Tax Appellate Tribunal (ITAT), which had concluded that the reassessment order passed under Sections 143(3) read with 147 was barred by limitation under Section 153 of the Act.
The assessee had filed its return of income for Assessment Year 2010-11 declaring a loss. Following a survey conducted in the Goldbricks Infrastructure Pvt. Ltd. group, the assessee’s case was reopened by issuing a notice under Section 148 on 28 March 2017. A reassessment order was subsequently passed on 31 December 2018, making an addition of ₹5.40 crore. The Commissioner of Income Tax (Appeals) allowed the assessee’s appeal on the limitation issue, and the ITAT upheld that decision while dismissing the Revenue’s appeal. The Revenue thereafter challenged the ITAT’s order before the High Court.
The Revenue argued that both the CIT(A) and the ITAT had failed to consider the effect of the High Court’s earlier interim order in the assessee’s writ petition and the final order directing the Assessing Officer to furnish reasons, receive objections, and dispose of them within a reasonable time. According to the Revenue, the period during which the proceedings remained stayed by the High Court ought to have been excluded while computing the limitation period under Section 153, and consequently the reassessment order could not be regarded as time-barred.
