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278 Points
Posted on 14 January 2012
Dear Dina,
Reply to your query is on the assumtion that the scrutiny is u/s 143 (3). Scrutiny u/s 143(3) is to be completed within 21 months of the end of the Assessment year. Thus in your case, sccrutiny of Assessment year 2007 - 2008 (Financial year 2007 - 2008) is to be completed by 31st December, 2009. Thus the Assessment order dated 21.12.2009 is well within the time limits of completion of assessment proceedings.
However determination of tax also forms part of the Assessment Order. CIT v. Purshottamdas T. Patel [1994] 209 ITR 52 (Guj.). Thus if the notice u/s 156 i.e notice of demand of tax is not accompanied alongwith the Assessment Order and it is issued after the time limit of completion of assessment proceedings, the Assessment Order is not said to have been made within the time limit and the same is invalid.
Thus it appears from your query that the notice of demand u/s 156 was issued on 26.03.2010 which is not within the due date and hence the Assessment Order does not stand good in law and the same is invalid.