Limitation under Section 153 bars post-DRP final assessments; order quashed while preserving liberty to revive other issues.

Final assessment orders issued after remand under transfer-pricing and DRP proceedings were examined for compliance with the outer limitation period in Section 153, and Sections 144C(12)/(13) were read harmoniously with Section 153 using the limited effect of a non-obstante clause; binding precedents on the applicability of the outer time limit were applied. The analysis concluded the challenged final order was issued beyond the statutory outer period and therefore barred by limitation, resulting in quashing of that order while preserving liberty to revive other issues if a future Supreme Court decision permits.

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Issues: Whether the final assessment order dated 26/09/2024 passed under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961 for the relevant assessment year is barred by limitation under Section 153 of the Income-tax Act, 1961 and therefore liable to be quashed.

Analysis: The issue was examined in light of the time-limits in Section 153 (including Sections 153(1), 153(4) and 153(2A)) and the provisions of Section 144C (including Section 144C(12) and Section 144C(13)). The principles of harmonious construction and the limited effect of a non-obstante clause were applied to reconcile Sections 144C and 153 rather than render either provision otiose. Binding decisions of higher forums on the applicability of the outer time limit under Section 153 to final assessment orders made after remand under transfer-pricing and DRP proceedings were followed. Coordinated Tribunal decisions that applied the Madras High Court ratio (Roca Bathroom Products) and safeguarded parties' rights by granting liberty to seek revival were considered relevant. The order evaluated the dates and statutory timelines submitted by the assessee against the prescribed outer limit for completion of final assessment and concluded that the final order was passed beyond the applicable statutory period.

Conclusion: The final assessment order dated 26/09/2024 under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961 is barred by limitation under Section 153 of the Income-tax Act, 1961 and is quashed; appeal allowed in favour of the assessee, with liberty to revive other issues if required by a future decision of the Hon'ble Supreme Court.

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