Rakesh Garg, J. - (1.) THE assessee filed return of income on 31st Oct., 1998 for the asst. yr. 1998 -99 declaring an income of Rs. 46,220 and an agricultural income of Rs. 84,286. The return was processed under Section 143(1)(a) of the IT Act, 1961 (hereinafter referred to as the 'Act') on 18th May, 1999. Subsequently, the assessment was reopened under Section 147 of the Act and a notice under Section 148 of the Act was issued on 8th Jan., 2001 which was served upon the assessee on 11th Jan., 2001. In respect thereto, the assessee filed a return of income on 28th Feb., 2001 declaring the same income as shown in the original return and this return was also processed under Section 143(1)(a) on 30th March, 2001 accepting the returned income. Thereafter, notices were issued under Section 143(2) and Section 142(1) of the Act and the assessment under Section 143(3) r/w Section 147 was completed on 14th Feb., 2003 on a total income of Rs. 17,01,235. Various additions and disallowances were made in this assessment.
(2.) THE assessee filed an appeal before the CIT(A) and besides contesting the disallowances made in the assessment, took up a ground that the assessment was time -barred in view of Section 153(2) of the IT Act and, therefore, the same should be quashed. It was contended that under Section 153(2), the assessment proceedings have to be completed within one year from the end of the financial year in which the notice under Section 148 was served. It was pointed out that the notice was served on the assessee on 11th Jan., 2001, which is a day which fell before 1st June, 2001 and, therefore, in such a case, the assessment ought to have been completed on or before 31st March, 2002. Since it was completed only on 14th Feb., 2003, the assessment, it was contended was beyond the period of limitation. The CIT(A) held that since Section 153(2) was amended w.e.f. 1st June, 2001 to reduce the time -limit available for completion of the assessment from two years to one year from the end of the financial year in which the notice under Section 148 was served, the amended provision would operate in the present case, notwithstanding that the notice was served before 1st June, 2001, and therefore the assessment ought to have been completed on or before 31st March, 2002 and since it was completed only on 14th Feb., 2003, it was beyond the period of limitation. Thus, the CIT(A) applied the amended Section 153(2) to restrict the time -limit available to the AO to complete the assessment.
(3.) FEELING aggrieved against this order, the Revenue filed an appeal before the Tribunal who vide impugned order dt. 6th July, 2005 held that the view taken by the CIT(A) that the assessment ought to have been completed on or before 31st March, 2002 is correct in law and thus, dismissed the appeal.;