TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 216
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....ing Officer [AO] u/s. 143(3) r.w.s 144C(3) of the Act on 28-02-2020. The assessee is aggrieved by disallowance u/s 14A; disallowance u/s 35(2AB) and disallowance u/s 2(24) r.w.s. 36(1)(va). 2. From the facts, it emerges that the assessee filed its return of income for this year on 30-11-2016. A reference u/s 92CA of Income Tax Act was made to Ld. Transfer Pricing Officer 2(2), Chennai wherein Ld. TPO, 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....
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....the case of the Appellant ought to have been completed within 33 months from the end of the Assessment year as per Section 153(1) read with Section 153(4) of the Act, i.e., on or before December 31, 2019. However, since the assessment was concluded vide the final assessment order dated February 28, 2020, the impugned assessment is clearly barred by statutory limitation. Accordingly, the impugned assessment for the subject year is null and void-ab-initio. In this regard, the Appellant relies upon the following rulings of this Hon'ble Tribunal, wherein the above position was upheld for the same assessment year: M/s Verizon Data Services India Pvt Ltd ((TS-825-ITAT-2022(CHNY)-TP)) M/s.Eaton Power Quality (P.) Ltd. (152 taxmann.com ....
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....bly 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 not disputed by the assessee. It was incumbent upon the Assessing Officer to wait for the determination of the Arm's Length Price (ALP) of the transaction under reference. ii) At that point of time, i....
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....grounds. No return of income, assessment, notice, summons or other proceeding furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act." 2.3. Following is the relevant extract from the ruling in the second ruling of the Hon'ble Apex Court which is being relied on: "23. We, therefore, agree with the Hi....
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....tated at the cost of repetition that in the estimation of the assessing officer special audit was essential for passing proper assessment order. If the court, while undertaking judicial review of such an order of the assessing officer directing special audit ultimately holds that such an order is wrong (for whatever reason) that event happens at a later date and would not mean that the benefit of exclusion of the period during which there was a stay order is not to be given to the Revenue. Explanation 1 which permits exclusion of such a time is not dependent upon the final outcome of the proceedings in which interim stay was granted. 24. We, therefore, answer this question in favour of Revenue." 3. In the instant case, having made a ref....
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....d 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 appe....