Tribunal quashes assessment order as time-barred due to TPO's delay. Additional ground makes other grounds unnecessary.

The Tribunal allowed the appeal, quashing the final assessment order due to being time-barred as a result of the TPO's order exceeding the prescribed time limit. The decision on the additional ground rendered the normal grounds raised in the appeal unnecessary for adjudication.

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Issues:
The appeal against the assessment order passed under sections 144C (13) r.w.s 143(3) of the Act, 1961 for Assessment Year 2013-14.

Details of the Judgment:

Issue 1: Assessment Order and Time Limit
The assessee, engaged in distribution of Asus Group products in India, filed a return of income for Assessment Year 2013-14, picked up for scrutiny. The Transfer Pricing Officer (TPO) made an upward adjustment to Marketing Service Fees. The draft assessment order determined the total income lower than the return. The Dispute Resolution Panel passed directions, and the final assessment order was passed. The assessee raised an additional ground challenging the time limit of the assessment order, arguing it was beyond the prescribed time limit. The AR contended that the order was time-barred, relying on judicial precedents. The Departmental Representative opposed, stating the grounds were not raised earlier. The Tribunal admitted the additional ground, considering it jurisdictional. The AR argued that the TPO's order was passed beyond the prescribed time, making the draft and final assessment orders time-barred. The DR supported the AO and TPO, claiming the orders were within the prescribed limit. The Tribunal found that the TPO's order was passed beyond the limitation period, following the decision of the Madras High Court, and quashed the TP order.

Issue 2: Eligible Assessee Status
As the TPO's order was barred by limitation, the assessee did not qualify as an eligible assessee under section 144C(15)(b). Consequently, the final assessment order was also time-barred. Citing decisions of the Delhi High Court and coordinate benches, the Tribunal quashed the final assessment order. The additional ground raised by the assessee was allowed, leading to the allowance of the appeal.

Conclusion:
The Tribunal allowed the appeal, quashing the final assessment order due to being time-barred as a result of the TPO's order exceeding the prescribed time limit. The decision on the additional ground rendered the normal grounds raised in the appeal unnecessary for adjudication.

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