Tribunal Voids Transfer Pricing and Final Assessment Orders as Time-Barred, Citing Supreme Court Precedent.

The Tribunal quashed the Transfer Pricing Order dated 01/11/2019 and the Final Assessment Order dated 31/03/2021, ruling both as barred by limitation. The Tribunal admitted an additional ground regarding the limitation issue, referencing SC precedent. It found the Transfer Pricing Order invalid since it was issued beyond the permissible date, and consequently, the Final Assessment Order was also void due to the invalidity of the preceding order. The appeal was allowed, rendering other grounds raised by the appellant moot.

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Issues Involved:
1. Admission of Additional Ground
2. Limitation for Passing Transfer Pricing Order
3. Limitation for Passing Final Assessment Order

Summary:

1. Admission of Additional Ground:
The appellant raised an additional ground claiming the Final Assessment Order dated 31/03/2021 was barred by limitation and thus void. The Tribunal admitted the additional ground based on the Supreme Court judgment in National Thermal Power Co. Ltd. vs. CIT, recognizing it as a legal ground that could be adjudicated based on existing records.

2. Limitation for Passing Transfer Pricing Order:
The appellant argued that the Transfer Pricing Officer (TPO) passed the order on 01/11/2019, beyond the permissible limit, citing the Madras High Court judgment in Pfizer Healthcare India Private Ltd. vs. Joint Commissioner of Income Tax. The Tribunal noted that the time limit for the TPO to pass the order was 31/10/2019. Since the order was passed on 01/11/2019, it was deemed barred by limitation and thus set aside.

3. Limitation for Passing Final Assessment Order:
The appellant contended that the Final Assessment Order dated 31/03/2021 was also barred by limitation. The Tribunal referred to previous judgments, including Mondelez India Foods Pvt. Ltd. and Atos India Pvt. Ltd., which established that if the TPO's order is invalid, the subsequent Final Assessment Order is also void. Since the appellant was not an "Eligible Assessee" under Section 144C due to the invalid TPO order, the Assessing Officer could not invoke Section 144C(1). Consequently, the Final Assessment Order passed on 31/03/2021 was beyond the prescribed period and thus barred by limitation.

Conclusion:
The Tribunal quashed both the Transfer Pricing Order dated 01/11/2019 and the Final Assessment Order dated 31/03/2021 as being barred by limitation and bad in law. The appeal was allowed, and all other grounds raised by the appellant were disposed of as infructuous.

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