Income-tax assessment u/s143(3)/144C(13) challenged as time-barred u/s153; order quashed as void, appeal allowed.

The dominant issue was whether an assessment order passed under s.143(3) read with s.144C(13) was time-barred under s.153. The Tribunal held that, even after accounting for the extended limitation contemplated by s.153(4), the last permissible date for completing the assessment was 31.12.2023; since the AO passed the order on 23.10.2024, it was beyond limitation. Relying on binding HC precedent and applying consistency with prior Tribunal decisions, the assessment order was held to be void and was quashed; the assessee's appeal was allowed.

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1. ISSUES PRESENTED AND CONSIDERED

(i) Whether the final assessment order passed under section 143(3) read with section 144C(13) was barred by limitation under section 153 (including the extension contemplated where reference is made to the Transfer Pricing Officer), and therefore liable to be quashed.

2. ISSUE-WISE DETAILED ANALYSIS

Issue (i): Limitation-interplay between section 153 and section 144C(13) for completing assessment of an "eligible assessee" involving transfer pricing reference

Legal framework (as discussed by the Court): The Court addressed the time-limit for completion of assessment under section 153(1), and the extension under section 153(4) where a reference to the Transfer Pricing Officer is made. It also examined the time stipulation in section 144C(13) requiring the final order to be passed within the period computed from receipt of directions of the Dispute Resolution Panel, and the argument based on the non-obstante clause in section 144C.

Interpretation and reasoning: The Court accepted the position that the outer limitation for completing assessment is governed by section 153 (including the applicable extension for transfer pricing reference), and that section 144C(13) does not operate to enlarge or override that outer limitation. The Court treated section 144C(13) as imposing an additional requirement that, after Dispute Resolution Panel directions are received, the Assessing Officer must pass the final order within the period prescribed therein, but still within the overall time limit under section 153. The Court rejected the contention that section 144C constitutes a self-contained code excluding section 153 for limitation purposes. It relied on the reasoning already adopted in an earlier decision of the Tribunal on an identical issue and followed that approach to maintain consistency.

Conclusions: The Court held that the limitation under section 153 (as applicable to the assessment year in question and extended due to transfer pricing reference) expired on 31.12.2023, whereas the impugned final assessment order was passed on 23.10.2024. Consequently, the assessment order was held to be time-barred and was quashed. Since the limitation controversy was stated to be pending before the Supreme Court for resolution by a larger bench, the Court granted liberty to revive the appeal for adjudication of remaining merits issues if the Supreme Court's decision later necessitates modification of this order; the other grounds were therefore kept open without decision.

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