M/S Haryana State Industrial & ... vs Acit, Circle, Panchkula on 26 October, 2021
6. The Court finds that the ITAT itself has been taking a
different position in many other cases, the orders in which
have been enclosed with the present petition. For instance,
in its order dated 9th December, 2015 passed in ITA No.
2256/Del/2005 (PHI Seeds Ltd. New Delhi v. Dy.
Commissioner of Income Tax, Circle 14(1), New Delhi), the
ITAT after noticing the aforementioned decision of the
Supreme Court in Sahara India (Firm) v CIT (supra) held:
"7.4. In the present proceedings what we are examining,
is whether the extended period of limitation as
provided under Explanation l (iii) of Section 153 is
available to the Assessing Officer for completion of
assessment u/s 143(3), or not. The assessee
contends that the order u/s 142(2C), extending the
period granted for completion and submission of
audit report is made without an application being
made for W.P.(C) 7734/2017 extension by the
assessee and for any good and sufficient reason,
and hence the extension is bad in law and hence the
AO would not get the benefit of the extended period
of time to specified in Explanation l(iii) of Section 153
of the Act. In our view, the Tribunal has jurisdiction
to adjudicate the issue as to whether an order of
assessment 143(3), is passed within the period of
limitation prescribed under the Act or not. For coming
to such a conclusion, in our view the Tribunal can
examine whether the order passed u/s 142(2A) or
u/s 142(2C) is in accordance with law or not. The
order passed u/s 142(2A) or u/s 142(2C) cannot be
appealed separately. But when an assessment order
is challenged, then the different aspects which are
integral to the process and ultimate completion of
amount can be challenged in Appeal. For example a
notice u/s 148 or reasons recorded by the A.0 prior
to re-opening of assessment cannot be challenged
separately. But an assessment order can be
challenged in an Appeal before the Ld. CIT(A) or the
ITAT on the ground that the re-opening itself is bad in
law, as the notice is illegal or not served or that there
is no material based on which reasons were
recorded etc. Every facet of an assessment can be
ITA No.1369/Chd/2019
A.Y. 2014-15
Page 8 of 32
challenged in appeal to deny once liability to be
charged to tax or to challenge the quantum of tax
demanded. In the case of hand, the legality of the
orders passed u/s 142(2A) or u/s 142(2C) can be
challenged to demonstrate that the order of
assessment has been passed beyond the period of
limitation. Thus, we reject this contention of the Ld.
CIT. DR."