Transfer Pricing remand under 92CA(3) is governed by Section 153(3), so fresh orders are time barred after the statutory period.

A Tribunal remand directing a fresh order by the Transfer Pricing Officer under the transfer pricing provisions is governed by the statutory fresh order limitation (Section 153(3)) and not by the extended time for in course references; the distinction between a reference made by an Assessing Officer during assessment and a Tribunal directed fresh order is determinative. Computation runs from the end of the financial year in which the Tribunal's order is received; on the facts the limitation expired at the end of the relevant FY and subsequent revenue action is time barred, entitling the assessee to refund with interest.

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Issues: (i) Whether a matter remitted by the Income Tax Appellate Tribunal to the Transfer Pricing Officer under Section 92CA(3) is governed by the time-limit for fresh orders under Section 153(3) or by the extended time provided by Section 153(4) where a reference is made under Section 92CA(1); (ii) In the facts of the case, whether the limitation for giving effect to the Tribunal's remand is governed by Section 153(3), Section 153(4) or Section 153(5) and the date on which the limitation expired.

Issue (i): Whether a remand by the Tribunal to the Transfer Pricing Officer is governed by Section 153(3) (fresh order) rather than a reference under Section 92CA(1) made during assessment and thus by Section 153(4).

Analysis: Section 92CA distinguishes between a reference made by an Assessing Officer under sub-section (1) and an order made by the Transfer Pricing Officer under sub-section (3). Section 153(3) expressly contemplates fresh assessments or fresh orders under Section 92CA made pursuant to an order under Section 254 (Tribunal). Section 153(4) extends time where a reference under Section 92CA(1) is made during the course of assessment or reassessment. A Tribunal remand that directs a fresh order under Section 92CA(3) is therefore conceptually and legally different from an Assessing Officer's in-course reference under Section 92CA(1). Precedent of the High Court of Delhi and coordinate decisions support that a Tribunal remand to the Transfer Pricing Officer attracts Section 153(3) time-limits and is not to be treated as a Section 92CA(1) reference made during assessment for the purpose of Section 153(4).

Conclusion: Issue (i) answered in favour of the assessee. A remand by the Tribunal to the Transfer Pricing Officer requiring a fresh order under Section 92CA is governed by Section 153(3) and not by the extension provision of Section 153(4) applicable to in-course references under Section 92CA(1).

Issue (ii): Whether, on the facts, the applicable limitation for giving effect to the Tribunal's remand expired on 31-03-2024 (assessee's case) or on 31-03-2025 (revenue's case).

Analysis: Section 153(3) prescribes the period for making a fresh assessment or a fresh order under Section 92CA in pursuance of a Tribunal order received by the Commissioner, calculated from the end of the financial year in which the Tribunal's order is received. The Tribunal's orders in the matters were received in the financial year 2022-23; therefore the nine/modified twelve months period under Section 153(3) runs from the end of the financial year 2022-23. The coordinate bench rulings relied upon apply the distinction between fresh orders under Section 153(3) and in-course references under Section 153(4), and compute limitation accordingly. Seeking documents or issuing notices after remand does not extend the Section 153(3) limitation simply because the Revenue sought further material; Section 153(5)'s shorter OGE timeline is inapplicable where a fresh order under Section 153(3) is mandated. Applying Section 153(3) to the dates on record yields expiry of the limitation on 31-03-2024.

Conclusion: Issue (ii) answered in favour of the assessee. On the facts, the limitation for passing orders giving effect to the Tribunal remand expired on 31-03-2024; actions taken by the revenue after that date are time-barred.

Final Conclusion: The petitions succeed on limitation grounds; the impugned communications rejecting refund claims are quashed and refund with applicable interest is directed to be processed and paid within a stipulated period, with specified consequences for non-compliance.

Ratio Decidendi: Where the Income Tax Appellate Tribunal remits matters for a fresh order under Section 92CA(3), the time-limit for making that fresh order is governed by Section 153(3) of the Income-tax Act, 1961, computed from the end of the financial year in which the Tribunal's order is received; such remand is distinct from a reference under Section 92CA(1) made during assessment which attracts Section 153(4).

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