Assessee wins appeal on assessment years 2011-14, TP Officer's order barred by limitation

The Tribunal allowed the assessee's appeals for the assessment years 2011-12, 2012-13, and 2013-14, quashing the assessment orders due to the Transfer Pricing Officer's order being barred by limitation. The Revenue's appeal was dismissed, and other grounds were not adjudicated upon.

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Issues Involved:
1. Validity of the Transfer Pricing Officer's order due to alleged limitation.
2. Consequent validity of the assessment orders under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961.

Summary:

Issue 1: Validity of the Transfer Pricing Officer's Order Due to Alleged Limitation

The assessee argued that the Transfer Pricing Officer's (TPO) order dated 30 January 2015 was barred by limitation as per Section 92CA(3A) read with Section 153 of the Income-tax Act, 1961. The Tribunal noted that the TPO's order should have been passed before 29 January 2015, making the order dated 30 January 2015 beyond the prescribed time limit. The Tribunal admitted the additional ground raised by the assessee, emphasizing that it is jurisdictional and can be raised at any time. The Tribunal relied on the decision of the Hon'ble Madras High Court in Pfizer Healthcare India (P.) Ltd., holding that the TPO's order was not sustainable due to being passed beyond the time limit.

Issue 2: Consequent Validity of the Assessment Orders

Since the TPO's order was found to be barred by limitation, the assessee did not remain an "eligible assessee" under Section 144C(15)(b) of the Act. Consequently, the extended time limit for passing the assessment order was not available. The Tribunal quashed the assessment orders for the assessment years 2011-12, 2012-13, and 2013-14, as they were also barred by limitation. The Tribunal followed the decisions in Pfizer Healthcare India (P.) Ltd. and ATOS India Pvt. Ltd., concluding that the assessment orders were not sustainable.

Conclusion:

The Tribunal allowed the appeals filed by the assessee for the assessment years 2011-12, 2012-13, and 2013-14, quashing the assessment orders. The appeal filed by the Revenue was dismissed. The Tribunal did not adjudicate on other grounds of appeal due to the quashing of the assessment orders. The order was pronounced in the open court on 11.04.2023.

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