Limitation for fresh assessment under remand: orders completed after the statutory period were quashed for being time-barred.

Analysis focuses on whether post-remand assessment actions complied with the limitation periods for fresh and consequential assessments. The article applies the rule that when an appellate remand requires a fresh assessment the limitation period for a fresh assessment governs, and that consequential orders are subject to that period. Factual timeline shows the DRP/TPO/AO steps taken after the Tribunal remand occurred beyond the applicable statutory window measured from the Tribunal order. Applying the legal framework, the article concludes those final assessment orders are time-barred and were quashed in favour of the assessee.

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Issues: Whether the final assessment orders dated 31.03.2025 and 03.04.2025 (passed pursuant to directions of the Dispute Resolution Panel and TPO after the Tribunal's remand) are barred by limitation under the time limits prescribed by Section 153(2A) and Section 153(3) of the Income-tax Act, 1961.

Analysis: The timeline shows the Tribunal rendered its order on 28.07.2022 after which the remand/second round proceedings commenced. Section 153(2A) prescribes the limitation for completion of a fresh assessment where an appellate order sets aside or cancels the earlier assessment and remits for fresh assessment; Section 153(3) applies to consequential orders but is subject to Section 153(2A). The directions by the Dispute Resolution Panel were issued on 25.03.2025 and the consequential orders by the TPO and Assessing Officer were passed on 28.03.2025, 31.03.2025 and 03.04.2025. Those dates fall beyond the period calculated under the proviso to Section 153(3)/Section 153(2A) measured from the Tribunal's order in July 2022. Established authorities hold that where remand requires a fresh assessment of an issue, the time limit in Section 153(2A) applies and failure to complete assessment within that period renders the proceedings time-barred. Applying that legal framework to the facts, the DRP/TPO/AO actions giving effect to the remand were completed after expiry of the statutory period.

Conclusion: The final assessment orders dated 31.03.2025 and 03.04.2025 are time-barred and are quashed; the appeal is allowed in favour of the assessee.

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