Assessee’s Return Accepted if AO Doesn’t Pass Timely Order After ITAT Remanded Matter Back to Him | HC
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Case Details: Aricent Technologies (Holdings) Ltd. v. ACIT - [2023] 152 taxmann.com 299 (Delhi)
Judiciary and Counsel Details
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- Vibhu Bakhru & Amit Mahajan, JJ.
- Ajay Vohra, Sr. Adv. & Saksham Singhal, Adv. for the Petitioner.
- Sanjay Kumar & Ms Hemlata Rawat, Advs. for the Respondent.
Facts of the Case
Assessee-company filed its return of income for the relevant assessment year. Assessing Officer (AO) passed an order making an addition on account of corporate charges. He also made disallowance of project expenses and also disallowed deductions under section 10B and, accordingly, raised tax demand. An outstanding refund relating to the previous assessment year 2006-07 payable to the assessee was adjusted against demand raised for the relevant assessment year.
On appeal, Tribunal remanded back to AO for de novo consideration and passing fresh orders. However, AO failed to pass any order, and the assessment became time barred under sections 153(3) and 153(4). The matter reached the Delhi High Court.
High Court Held
The Delhi High Court held that since assessment became time-barred, income returned by the assessee for the relevant assessment year would stand accepted. Thus, any amount due to the assessee as refund for the previous assessment year, which was adjusted in the relevant year, was to be refunded along with interest as applicable.
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