TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 390
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....he present writ petition is to draft assessment order dated 26.07.2019, passed in terms of Section 143(3) r.w. Section 144C(1) of the Income Tax Act, 1961 (in short 'Act'). 2. The primary arguments advanced by Mr.N.V.Balaji, for the petitioner and Mr.D. Prabhu Mukund Arun Kumar, learned Junior Standing Counsel for the respondent, turn around the bar of limitation. 3. The admitted dates and events are as relevant to decide the issue are as follows: (i) The order of assessment relates to assessment year (AY) 2015-16 and the time limit for completion of regular assessment as per Section 153(1) of the Act, being 21 months from the end of the relevant assessment year, is 31.12.2017. (ii) A reference was made to the Transfer Pricing O....
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.... refers to the exclusion of the period when the TPO was awaiting information from the competent authority and reads as follows: Time limit for completion of assessment, reassessment and recomputation. 153. ...... Explanation 1- For the purpose of this section, in computing the period of limitation- ...... (x) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A and ending with the date on which the information requested is last received by the Principal Commissioner or Commissioner or a period of one year, whichever is less; or (ix) The period between 29.10.2018 and 27.03.2019 ....
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....itation shall be deemed to have been extended accordingly. (xii) The last of the information in this case was received by the TPO on 27.03.2019, by which time, the time for completion of regular assessment had itself long elapsed, on 31.12.2018. (xiii) The provisions of Section 92(CA)(3A) state that a transfer pricing order is to be passed at any time before 60 days prior to the date on which the period of limitation, referred to in Section 153 for making an assessment, expires. (xiv) Thus, had no reference been made for exchange of information, the time limit would have expired on 31.10.2018. This is a view that I have taken in a batch of writ petitions in W.P.Nos.32699 of 2019 etc. and batch which conclusion stands affirmed by the Divi....
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....xtended by another 60 days for completion of assessment. Till this point, the dates and events are admitted by both parties. 4. The impugned order has been passed on 26.07.2019 and, according to the petitioner, is barred by limitation. It is the petitioner's submission that the order of assessment ought to have been passed on or before 22.07.2019 reckoning the period of 60 days from 24.05.2019. 5. The revenue supports the impugned order relying upon the provisions of Section 92(CA)(4) that read as follows: Reference to Transfer Pricing Officer: 92CA. ..... (4) On receipt of the order under sub-section (3), the Assessing Officer shall proceed to compute the total income of the assessee under sub-section (4) of section 92C in confor....
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.... is contemplated that would alter the limitation set out under Section 153C save the exclusions set out under Explanation-1 to Section 153C itself. 11. The time limits set out under sub-section (3A) of Section 92CA are thus subject to the limitation prescribed under Section 153 that can, under no circumstances, be tampered with. If the argument of the revenue is to be accepted, the limitation set out under Section 153 would stand distorted, which is an incorrect understanding of the legal position. 12. The second proviso to Explanation-1 of Section 153 is categoric in stating that period of limitation available to the Assessing Officer for making an order of assessment shall be extended to 60 days. The 60 days period, thus must run from t....
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....y of the valuation report to him. 16. Sub-Section (6) says that upon completion of the process of valuation, the officer shall send a copy of the report of the estimate made under Section 142A(4) or to the best of his judgment under sub-section (5), as the case may be, to the assessment officer and the assessee within a period of 6 months from the end of the month in which the reference is made under sub-section (1). 17. Sub-section (7) says that the Assessing Officer may on receipt of the report from the valuation officer and after giving the assessee an opportunity of being heard, take into account such report in making the assessment or re-assessment. 18. In such situations as well, the time taken for furnishing of the reports of spec....