Limitation under DRP-driven assessment made the final order non est when passed beyond the statutory deadline.

The final assessment order passed pursuant to DRP directions was held to be time-barred because section 144C(13) required it to be made within one month from the end of the month in which the directions were received. As the directions were received on 30.12.2021, the last permissible date was 31.01.2022, but the order was passed on 02.02.2022. The order was therefore beyond the statutory limit, treated as non est, and the issue was decided in favour of the assessee.

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Issues: Whether the final assessment order passed pursuant to the DRP directions was barred by limitation under section 144C(13) of the Income-tax Act, 1961.

Analysis: The DRP directions were received by the Assessing Officer on 30.12.2021. Under section 144C(13), the final assessment order had to be passed within one month from the end of the month in which the directions were received. The last permissible date was 31.01.2022, but the final assessment order was passed on 02.02.2022. The order was therefore beyond the statutory time limit and could not be sustained in law.

Conclusion: The final assessment order was barred by limitation and was treated as non est, with the issue decided in favour of the assessee.

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