Itxa/2588/2011 Of The Commissioner Of Income Tax -18 v. Late Pravin M. Shah

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (LOD) NO.1243 OF 2011 The Commissioner of Income Tax-18, Mumbai ..Appellant. V/s. Late Pravin M. Shah through L.R. Virang P. Shah ..Respondent. Mr. D.A. Athavale for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND A.R. JOSHI, JJ. DATED : 29TH NOVEMBER, 2011 P.C. :- 1.Whether the ITAT was justified in holding that the block assessment order dated 6[th] July, 2007 passed by the assessing officer was time barred, is the question raised in this appeal. 2.The ITAT in para 23 of its order has recorded a finding that the assessing officer had time limit upto 14[th] November, 2006 for passing the block assessment order. On 9/11/2006 the assessing officer passed an order under Section 142(2A) of the Income Tax Act, 1961 for special audit without hearing the assessee, which was contrary to the decision 2 itxal-1243-11 of the Apex Court in the case of Rajesh Kumar & Ors. V/s. DCIT reported in [2006] 287 ITR 91 (SC). The ITAT recorded a finding that the special audit was ordered by the assessing officer only to extend the limitation period and since the said order of special audit was passed without hearing the assessee the order of referring the matter to the special audit was bad and if that order of appointing the special audit goes, then the assessment becomes barred by time. In these circumstances, in our opinion, no fault can be found with the decision of the ITAT in holding that the block assessment order passed by the assessing officer was time barred. Accordingly, we see no reason to entertain the appeal. Hence the appeal is dismissed with no order as to costs. (A.R. JOSHI, J.) (J.P. DEVADHAR, J.)