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ITAT Pune dismisses Revenue's appeal, upholds assessee's objection on assessment jurisdiction. The Appellate Tribunal ITAT Pune dismissed the Revenue's appeal and allowed the Cross Objections of the assessee regarding the jurisdiction of the ...
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ITAT Pune dismisses Revenue's appeal, upholds assessee's objection on assessment jurisdiction.
The Appellate Tribunal ITAT Pune dismissed the Revenue's appeal and allowed the Cross Objections of the assessee regarding the jurisdiction of the Assessing Officer in passing the assessment order beyond the specified time limit under section 153(1) of the Income-tax Act, 1961. The final assessment order passed on 17.06.2013 was deemed time-barred as it exceeded the extended period of 12 months by 31.03.2013. The judgment directed to set aside the assessment, ruling it null and void in law. The decision was made on January 25, 2019.
Issues Involved: 1. Jurisdiction of Assessing Officer in passing assessment order beyond the time limit specified under section 153(1) of the Income-tax Act, 1961.
Analysis: The judgment pertains to an appeal filed by the Revenue against the order of CIT(A)-13, Pune, related to the assessment year 2009-10 under section 143(3) of the Income-tax Act, 1961. The appeal and Cross Objections by the assessee were heard together. The Cross Objections, filed after a delay of 148 days, were allowed after the assessee provided reasons for the delay. The issue raised in the Cross Objections challenged the jurisdiction of the Assessing Officer in passing the assessment order beyond the specified time limit.
The key contention was whether the final assessment order passed on 17.06.2013 was time-barred or within the time available to the Assessing Officer. The Assessing Officer had made a reference to the Transfer Pricing Officer (TPO) under section 92CA(1) of the Act, and the TPO did not propose any upward adjustment to the international transactions. The judgment analyzed the provisions of sections 153 and 144C of the Act to determine the time limit for assessment completion and the procedure when a reference is made to the TPO.
The judgment highlighted that if no transfer pricing adjustment was made, the assessment order had to be passed within the extended period of 12 months, ending by 31.03.2013. However, the final assessment order was passed on 17.06.2013, rendering it time-barred. The Assessing Officer's argument that the draft assessment order was passed on time was rejected, emphasizing that the final assessment order is what completes the proceedings. As the final assessment order was beyond the time limit, it was deemed null and void in law, leading to the direction to set aside the assessment.
Consequently, the judgment dismissed the Revenue's appeal and allowed the Cross Objections of the assessee. By deciding the preliminary jurisdictional issue in favor of the assessee, all other grounds of appeal raised by the Revenue were deemed academic. The judgment was pronounced on January 25, 2019, by the Appellate Tribunal ITAT Pune, with specific judges mentioned for the case.
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