Notice of Assessment Issued Within Limitation, Assessment Order Valid Even If Passed Beyond Three-Year Period: Madras High Court

The Madras High Court held that an assessment order issued after the three-year period is valid if the notice of assessment was issued within the limitation period. The court found that as long as the notice is issued before the expiration of the statutory period, the assessment can be finalized even beyond that period. This interpretation of Section 153 of the Income Tax Act helps clarify the issue of timelines and offers taxpayers clarity regarding compliance deadlines. The court's ruling effectively draws a distinction between the issuance of a notice and the actual passing of the order. The decision underlines the significance of adhering to statutory timelines but also allows flexibility in the conclusion of assessments, provided the initiating step was on time.