2021 (4) TMI 1357

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....4.12 Crores as filed by the assessee, however, the dispute has arisen on account of applicable rate of tax to the said income. The assessee has offered the income @10% in terms of Article 11 of the Tax-Treaty provisions between India and Cyprus. However, Ld. AO, has opined that the income would be chargeable @20% plus applicable surcharge and cess in terms of Section 115A(1)(a)(ii) of the Act. The income earned by the assessee is in the shape of interest on fully & compulsorily convertible debentures (FCCB) from Shree Ahuja Properties and Realtors Private Limited. The assessee is a company incorporated in Cyprus. 2. The Ld. AR, at the outset, drew our attention to the additional ground raised by the assessee and submitted that since there ....

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....red in not passing the assessment order within the time limit prescribed for completion of assessment proceedings under Section 153 of the Act. Since this is purely legal ground and contest the very validity of the assessment order and do not require appreciation of new facts, the same is admitted in terms of decision of Hon'ble Apex court in National Thermal Power Co. Ltd. V/s CIT (1998 229 ITR 383). Since this ground goes to the root of the matter, we proceed to adjudicate the same in succeeding paragraphs. 4. For the purpose of adjudication, it would be worthwhile to take note of few dates. The assessment year involved is AY 2015-16 and the final assessment order has been passed on 27/09/2019. The date of directions given by Ld. DRP is....

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....assessment would have been time barred as on 31.12.2016, the present assessment order dated 16.10.2017. Once, we hold that no draft assessment order would have been issued in this case as the provisions of Section 144C(1) of the Act could not have been invoked in this case. The time limit for completion assessment was available only to 31.12.2016, hence, we are of the view that the issuance of draft assessment order cannot end up increasing the time limit for completion of the assessment under section 143(3) of the Act. This issue has been adjudicated by the co-ordinate bench of this Tribunal in the case of IPF India Property Cyprus (No.1) Ltd. Vs. DCIT (2020) 183 ITD 46 (Mumbai-Trib.), wherein it is held as under: - "6. Once this amendme....