COMMNR. OF INCOME TAX, GUJARAT CENTRAL vs SAURASTHRA CEMENT & CHEM. INDUSTRIES LTD

The Supreme Court ruled that the assessment order dated 01.09.1984 was time-barred under Section 153 of the Income Tax Act, 1961, as it was passed after the expiration of the two-year limitation period from the end of the Assessment Year 1981-82. The Court held that the period during which the draft assessment order was with the Inspecting Assistant Commissioner could not be excluded from the limitation period, as the IAC had concurrent jurisdiction with the Income Tax Officer. Consequently, the Court upheld the High Court's decision affirming the ITAT's ruling that the assessment was invalid due to being time-barred.