In case where ITAT remands a matter to the file of AO, if AO doesn’t pass Asst. Order within one year from the end of financial year in which such order is received by CCIT or CIT, such asst. proceedings becomes time barred:

Whenever Hon’ble ITAT remands a matter to the file of AO with certain specific directions, AO must pass an Asst. Order within a period of two years from the end of financial year (“One Year” instead of “two years” w.e.f. 01/06/2001) in which such order passed by Hon’ble ITAT is received by the Chief Commissioner or Commissioner as prescribed u/s 153(2A) of the Act. If AO doesn’t pass an Asst. Order within the prescribed time limit, such proceedings become time-barred and the assessment placed before AO by Hon’ble ITAT’s order must be treated as having abated. Any excess tax paid by the assessee under original assessment framed by the AO must be refunded with consequential effect.

[INSTRUMENTS AND CONTROL COMPANY (SCA 10330 of 2003, Judgment dated 18/06/12)]