Commnr. Of Income Tax, Gujarat Central vs Saurasthra Cement & Chem. Industries ...

The Supreme Court held that the assessment order dated 01.09.1984 was time barred under Section 153 of the Income Tax Act, 1961, which mandates a two-year limit for assessments. The Court found that the period from 13.03.1984 to 31.08.1984 could not be excluded for limitation purposes, as the Inspecting Assistant Commissioner (IAC) had concurrent jurisdiction with the Income Tax Officer (ITO) due to an order under Section 125A(1). Consequently, the Court upheld the High Court's dismissal of the Revenue's appeal, affirming the ITAT's decision that the assessment was invalid due to being beyond the prescribed time limit.