TaxTMI 
TaxTMI 
2024 (6) TMI 216
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.... vide order dated 01-11-2019, proposed certain transfer pricing (TP) adjustment. Pursuant to the same, Ld. AO framed an assessment u/s 143(3) r.w.s. 144C(3) on 28-02-2020. Upon further appeal, Ld. CIT(A) partly allowed the appeal of the assessee against which the assessee is in further appeal before us. 3. The Ld. AR, at the outset, tabulated the sequence of assessment proceedings to demonstrate that the assessment order is time barred and accordingly null and void. The submissions made by Ld. AR read as under: - Particulars Date End of the Assessment Year 31/03/2017 Time limit for completion of assessment as per Section 153(1) of the Income Tax Act, 1961 ('the Act') - 21 months from the end of the Assessment year 31/12/2018 Time limit for completion of assessment as per Section 153(4) of the Act in case of the Appellant since transfer pricing reference was made additional 12 months 31/12/2019 Time limit for issuance of Transfer Pricing Order as per Section 92CA(3A) of the Act - as upheld by the Hon'ble Madras High Court in the case of the Appellant in WA No. 1148 and1149 of 2021 31/10/2019 Date of issuance of Transfer Pricing Order i....
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....ithout jurisdiction, barred by limitation, illegal, contrary to provisions of the Act, and is therefore, liable to be quashed. 2.2: The Impugned order is liable to be quashed as invalid and without jurisdiction, on account of being barred by limitation under section 153(1) read with section 153(4) of the Act, since the Appellant is not an eligible Assessee under section 144C (1) of the Act as the transfer pricing proceedings have become void ab-initio subsequent to the order of the Madras High Court in WP No 32699 of 2019 upheld by WA No 1148 of 2021. 2. Reply: With reference to the above grounds of appeal, it is humbly submitted at the outset that the above two grounds of appeal are based on an imaginary scenario as if no transfer pricing reference was made and no order was passed by the Ld Transfer Pricing Officer so that the time limit of passing the assessment order can be traced back to an earlier period. 2.1. That the above grounds are specious and illogical can be appreciated by considering the following arguments: i) The Assessing Officer had made a reference to TPO u/s 92CA of the income -tax Act which is a matter of record and which is ....
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....ng in the second ruling of the Hon'ble Apex Court which is being relied on: "23. We, therefore, agree with the High Court that the special audit was an integral step towards assessment proceedings. The argument of the appellants that the writ petition of the appellant was ultimately allowed and the Court had quashed the order directing special audit would mean that no special audit was needed and, therefore, it was not open to the respondent to wait for special audit, may not be a valid argument to the issue that is being dealt with. The assessing officer had, after going through the matter, formed an opinion that there was a need for special audit and the report of special audit was necessary for carrying out the assessment. Once such an opinion was formed, naturally, the assessing officer would not proceed with the assessment till the time the special audit report is received, inasmuch as in his opinion, report of the special audit was necessary. Take a situation where the order of special audit is not challenged. The assessing officer would naturally wait for this report before proceeding further. Order of special audit followed by conducting special audit and repor....
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...., bunch of assessee invoked writ jurisdiction of Hon'ble Court on the ground that the order passed u/s 92CA(3) was barred by limitation by one day. It was noted that in terms of Sec.92CA(3A), an order has to be passed by TPO before 60 days prior to the last day on which the period of limitation referred to in Sec.153 for making assessment expires. The assessment is to be completed within 21 months from end of assessment year in which the income was first assessable. Therefore, counting from 31.03.2017, the assessment was to be framed on or before 31.12.2019. The period of 60 days prior thereto would run till 01.11.2019 and any date prior thereto would mean 31st of October or before. Since the order was passed on 01.11.2019, the same would be barred by limitation. 7. The revenue's writ appeals against this decision came up for hearing before Division Bench of Hon'ble Court which was disposed-off on 31.03.2022 wherein the writ appeals were dismissed and the adjudication of learned Judge was confirmed. 8. The assessee preferred first appeal against assessment order dated 28-02-2020 on 29-12-2021. In the meanwhile, Ld. AO gave effect to the order of Hon'ble Single Judge of High C....