LI Network
Published on: December 22, 2023 at 18:30 IST
In a recent development, the Delhi High Court has acknowledged the returned income for a span of 12 years, highlighting that the limitation period to pass a fresh assessment order has elapsed.
Justice Rajiv Shakdher and Justice Girish Kathpalia observed that, according to Section 153(2)(A) of the Income Tax Act or the amended provision, Section 153(3), the Assessing Officer (AO) currently lacks jurisdiction and legal standing to issue an assessment order.
The appellant/assessee contested the Revenue’s initiation of proceedings to pass a fresh assessment order, following the directions of the Income Tax Appellate Tribunal (ITAT), citing it as time-barred under Section 153(2A) and the amended Section 153(3). For the assessment years 1998–99 to 2009–10, the assessee filed returns, subject to scrutiny and assessment.
The Revenue Court appealed to the High Court for the assessment years 1998-99 to 2002-03, resulting in the court remanding the matter to the ITAT for reconsideration.
Subsequently, the ITAT, through an order dated November 21, 2014, remitted the matter to the Revenue for fresh consideration for the assessment years 1998-99 to 2002-03 and also for the assessment years 2003-04 to 2009-10. Regarding the assessment year 2003-04, the ITAT, in an order dated May 29, 2015, directed the Revenue to pass a fresh assessment order on two specific issues.
The department issued notices pursuant to the ITAT orders on May 18, 2016, and June 17, 2016, for the assessment year 1998–99.
The assessee objected to the notices, citing limitation. In a prior hearing, the court allowed the Revenue to proceed with the assessment order with the condition not to give effect to it. However, as of August 8, 2018, no assessment orders had been issued by the AO despite the court’s opportunity.
The central issue revolved around whether the limitation for a fresh assessment order aligned with the Tribunal’s directive had expired.
The Court ruled that the assessment proceedings for the assessment years 1998-99 to 2009-10, in accordance with the Tribunal’s orders dated November 21, 2014, and May 29, 2015, are now time-barred.
The AO is directed to accept the returned income submitted by the petitioner for the aforementioned assessment years. The return on record will be processed, and consequential orders will be issued.
