COMMISSIONER OF INCOME TAX Vs. ANCHI DEVI

JUDGEMENT

(1.) THE Revenue has filed the present appeal under Section 260A of IT Act, 1961 (hereinafter referred to as the 'Act') against the order dt. 6th July, 2005 passed by the Tribunal, Delhi Bench 'A', New Delhi in ITA No. 4075/Del/2003 for the asst. yr. 1998 -99 raising the following substantial questions of law:

(2.) WHETHER on the facts and circumstances of the case, the Tribunal is right in dismissing the Departmental appeal without appreciating that the amended provision of Section 153(2) operating from 1st June, 2001 is effective only in respect of notices under Section 148 served on or after 1st June, 2001 and is prospective in nature?

(3.) 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. The appeal of the assessee was allowed vide order dt. 20th June, 2003.