Petition Granted: Assessment Order Quashed Due to Missed Deadline Under Income Tax Act Section 144C.

The HC allowed the petition, issuing a Writ of Certiorari to quash the final assessment order, notice of demand, and show cause notice for penalty, as they were deemed barred by limitation under Section 144C of the Income Tax Act, 1961. The Court found the assessment order was passed beyond the statutory time limit, accepting the petitioner's submission regarding the receipt date of the draft assessment order. The Respondent's affidavit failed to provide evidence to counter the petitioner's claims, leading to an adverse inference. The order was directed to be sent to the Principal Chief Commissioner of Income Tax, concluding the matter.

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Issues:
1. Barred by limitation under Section 144C of the Income Tax Act, 1961.

Analysis:
The petitioner filed its original return of income for Assessment Year 2020-21, declaring a total income. The case was selected for scrutiny, and a notice was issued under Section 143(2) of the Act. The Transfer Pricing Officer (TPO) proposed a downward adjustment with regard to reimbursement of GIT cost. A draft assessment order was sent to the petitioner, who did not file any objections within the stipulated time frame. Consequently, the Assessing Officer (A.O.) passed the assessment order under Section 143(3) of the Act. The petitioner contended that the assessment order was barred by limitation, citing provisions of Section 144C of the Act. The petitioner argued that the final assessment order was passed beyond the statutory time limit, relying on a previous judgment by the Bombay High Court.

The affidavit filed by the Respondent stated that the draft order was sent to the assessee at a later date, contradicting the petitioner's claim of receiving it on the initial date. The Court observed that the Respondent's affidavit did not address the specific allegation of the petitioner regarding the receipt date of the draft assessment order. The Court noted the absence of supporting evidence from the Respondent, leading to an adverse inference against them. Ultimately, the Court accepted the petitioner's submission that the draft assessment order was indeed served on the initial date, and the final assessment order was passed beyond the prescribed time limit, thus deeming it barred by limitation under Section 144C of the Act.

In conclusion, the Court allowed the petition, issuing a Writ of Certiorari to quash and set aside the final assessment order, notice of demand, and the show cause notice for penalty. The Court directed the copy of the order to be sent to the Principal Chief Commissioner of Income Tax, thereby disposing of the petition.

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