Validity of assessment order under section 144C(13) where DRP directions on ITBA Portal fix limitation date; order quashed

Validity of assessment orders concerning computation of limitation where directions of the Dispute Resolution Panel uploaded on the ITBA Portal constitute valid service; hence the crucial date for computing the one-month period runs from upload and transmission to the Faceless Assessment Unit. Applying that rule, directions uploaded on 17/06/2022 and sent to the Faceless Assessment Unit on 29/06/2022 made the limitation expire on 31/07/2022; an assessing officers order dated 04/08/2022 therefore exceeded the statutory limitation and was set aside. Appeal before ITAT allowed on limitation grounds.

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Issues: Whether the assessment order passed u/s 143(3) r/w s.144C(13) of the Income-tax Act, 1961 is barred by limitation where the DRP's directions under s.144C(5) were uploaded on the ITBA portal on 17/06/2022 and the Assessing Officer passed the final order on 04/08/2022.

Analysis: The limitation under s.144C(13) runs from the end of the month in which the Assessing Officer is deemed to have received the DRP directions issued under s.144C(5). Under the faceless assessment regime and E-as/ITBA procedures, uploading the DRP directions on the ITBA portal constitutes communication/receipt for limitation purposes. Judicial authorities construing similar facts have held that departmental portal upload results in loss of control by the originator and amounts to receipt by the recipient on the date of upload; hence the one-month period is to be computed from the end of that month.

Conclusion: The DRP directions uploaded in June 2022 are to be treated as received in June 2022; the one-month limitation under s.144C(13) expired on 31/07/2022 and the assessment order dated 04/08/2022 is time-barred and is quashed. Appeal allowed in favour of the assessee.

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