Assessment Orders Quashed Due to Time Limit Breach; Appeals Allowed, Objections Dismissed as Academic.

The Tribunal quashed the assessment orders for A.Y. 2011-12 and A.Y. 2016-17, ruling them barred by limitation due to the invalidity of the Transfer Pricing Officer's orders, which were issued beyond the statutory time limits. Consequently, the assessee's appeals were allowed, and the Assessing Officer's appeals and the assessee's cross objections were dismissed as academic.

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Issues Involved:
1. Barred by Limitation
2. Validity of Transfer Pricing Order
3. Validity of Proceedings under Section 143(3) read with Section 144C
4. Final Assessment Order Barred by Limitation

Summary:

Issue 1: Barred by Limitation
The assessee contended that the Transfer Pricing Officer (TPO) passed the order under Section 92CA(3) of the Income-tax Act, 1961 on 30th January 2015, which was beyond the statutory time limit, rendering the order null and void. The Tribunal agreed, citing the Madras High Court decision in Saint Gobain India Pvt. Ltd., which emphasized that the TPO's order must be passed within the prescribed time frame. Consequently, the Tribunal quashed the TPO's order for being time-barred.

Issue 2: Validity of Transfer Pricing Order
Since the TPO's order was quashed, the assessee ceased to be an "eligible assessee" under Section 144C of the Act. This invalidated the draft assessment order and the subsequent final assessment order. The Tribunal followed the precedent set by the ATOS India Private Limited case, which held that if the TPO's order is invalid, the entire assessment proceeding becomes void.

Issue 3: Validity of Proceedings under Section 143(3) read with Section 144C
The Tribunal found that the draft assessment order dated 23rd March 2015 and the final assessment order dated 26th February 2016 were invalid due to the invalidity of the TPO's order. The Tribunal emphasized that the assessee could not be considered an "eligible assessee" without a valid TPO order, thus nullifying the assessment proceedings.

Issue 4: Final Assessment Order Barred by Limitation
For A.Y. 2016-17, the Tribunal noted that the TPO's order was passed on 1st November 2019, beyond the statutory time limit, making it invalid. Consequently, the final assessment order passed on 9th May 2021 was also barred by limitation. The Tribunal quashed the assessment order, reiterating that the extended time limit for assessment was not available to the Assessing Officer without a valid TPO order.

Conclusion:
The Tribunal allowed the assessee's appeals for both A.Y. 2011-12 and A.Y. 2016-17, quashing the assessment orders for being barred by limitation. The appeals of the Assessing Officer and the cross objections of the assessee were dismissed as they became academic following the Tribunal's decision on the limitation issue.

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