K V ABDUL AZEEZ Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF KERALA
K V Abdul Azeez
COMMISSIONER OF INCOME TAX
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K. Vinod Chandran, J. -
(1.) The appellant, common in all the appeals, is concerned with the assessment years 2000-2001 to 2006-2007. The records reveal an assessment having been completed under Section 153C of the Income Tax Act, 1961 ('Act' for short), read with Section 153B pursuant to a search conducted in another's premises. The assessment was suo motu revised under Section 263 and remanded for fresh consideration to the Assessing Officer (A.O).
(2.) The assessee has raised questions of law from the order; on the question of limitation for completion of assessment, on a remand made under Section 263 of the Act. At the time of hearing an additional question was raised, of satisfaction of the A.O. being necessitated under Section 153C. Though the additional question is not raised in the instant appeals, we are inclined to consider it too, for, it strikes at the very root of the matter, being an essential requirement to initiate and proceed with the assessment; in the absence of which the proceedings stand fatally vitiated. We are re-framing the questions of law as follows:
(i) Ought not the Tribunal have found that the A.O should have completed the fresh assessment, on a remand under Section 263, within the period of limitation, as provided under Section 153B of the Act?
(ii) Whether on a remand made under Section 263 the limitation provided under Section 153B would stand automatically extended, and would not that do violence to the specific period of limitation provided in the Statute?
(iii) Whether it was proper for the Commissioner to have remanded the matter for fresh assessment, when the time for assessment under Section153B stood expired; especially when the Commissioner himself had the power to make a modification or enhancement in the assessment, within two years from the date of the initial order under Section 263 of the Act?
(iv) Whether the A.O was justified in proceeding with the matter for assessment under Section 153C without entering a satisfaction as to the assessment to be made on the other person, as defined under Section 153C of the Act?
(3.) We need not look into the details of the assessment made, since the questions raised are purely on law, touching upon limitation and satisfaction of the A.O. The original order of assessment was on 27.12.2007 and for convenience we refer to I.T.A. No.56/2017, wherein the order is produced as Annexure A. The Commissioner, by orders dated 12.03.2010, revised the assessments for the six year period, i.e., 2000-2001 to 2005-2006 by Annexure -B, and for the year 2006-2007 by Annexure D; both under Section 263 of the Act. A fresh assessment was made by the AO for all the years, identical so to say, by Annexure E dated 30.12.2010. The said order goes beyond the period of limitation, is the specific contention raised.;
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