Hon’ble High Court held that the AO failed to comply with the directions of the Tribunal to pass a fresh assessment order within 6 months from the date of communication of the Tribunal order. Thus, the fresh assessment order passed by AO beyond the stipulated timelines of 6 months is barred by limitation under section 153(3) of the Act and income as returned by the assessee is to be accepted. Followed CIT v. Shelly Products (2003) 129 Taxxman 271/261 ITR 367(SC) (AY.2004-05)
Ramesh Chawla (HUF) v. ITO (2024) 301 Taxman 44 (Delhi)(HC)
S. 153 : Assessment-Limitation-Failure to pass the order within six months from the date of communication of the Tribunal order-Appellate Tribunal restored the matter to the file of AO with directions to comply with the same within 6 months-Assessment order passed beyond the stipulated timeline provided by the ITAT is barred by limitation.[S.153(3), 254(1) Art.226, 265]