TaxTMI 
TaxTMI 
2026 (4) TMI 1389
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....t and the information documents and clarification provided by the assessee to evidence the arm's length nature of management fees. 4. The Ld. TPO erred by applying CUP Method as the Most Appropriate Method and there by determining the ALP for the international transaction as Nil. 5. Without prejudice to the above the Ld. DRP/AO failed to appreciate the fact that the management fee of INR Rs. 1,03,95,878/- was noy debited to the P&L Account as the same was capitalized during the year under consideration. 6. The Ld. AO erred in totally ignoring the order passed by Ld. TPO giving effect to directions of Ld. DRP wherein the adjustment of Rs. 1,72,00,000/- had been deleted and wrongly retained the adjustment in the Final Assessment order. 7. Any other ground that may be urged at the time of hearing with the prior approval of the Hon'ble Tribunal. 3. An application has been moved by the assessee to raise the additional ground of appeal under rule 11 of the Income Tax (appellate Tribunal) Rules 1963 and stated that the final assessment order dated 22-02-2022 passed by the Ld. AO u/s 143(3) read with section 144C(13) is barred by the time limitation. ....
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....actions as envisaged in section 92B of the Act. After considering the auditor's report in Form 3CEB it was felt that case be transferred to the Transfer Pricing Officer (TPO) for determining Arm's Length Price under section 92CA(1) of the Act. The Ld. TPO passed the order after considering the reply filed by the assessee and directed the AO to make the addition of Rs. 1,03,95,878/- as adjustment on account of Management Fees and RS. 1,72,00,000/- an adjustment on account of Loan repaid. Against the direction of the Ld. TPO the assessee filed the appeal before the DRP who by order dated 14-12-2021 confirmed the order of the Ld. TPO and directed the AO to incorporate the findings of the Panel. In the compliance of the Hon'ble DRP direction the Assessing Officer framed the Assessment order on 22-02-2022 after making the addition of Rs. 2,75,95,878/-. Aggrieved, by the action of the AO the assessee preferred this appeal before the tribunal. 6. The ld. AR of the assessee raised the legal ground no 8 and submitted that the assessment order dated 22-02-2022 passed by the Ld. AO under section 143(3) r.w.s. 144C(13) of the Act is time barred. He submitted that as per the provisions of se....
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....tion dated 11 September 2025 and its detailed contentions in respect of the aforesaid ground is provided as follows for your Honour's kind consideration: 5. Additional Ground No. 8: Final assessment order dt. 22 February 2022 being time barred under section 144C(13) of the Act: 5.1. It is humbly reiterated that the final assessment order dated 22 February 2022 (at Pg. 4 of appeal set) passed by the Ld. AO under section 143(3) r.w.s. 144C(13) of the Act is barred by limitation being passed beyond a period of 1 month from the end of the month in which the DRP directions were received as stipulated under section 144C(13) of the Act. 5.2. In this regard, the relevant provisions of section 144C(13) of the Act reads as follows: "Reference to dispute resolution panel. 144C. (1) ... (13) Upon receipt of the directions issued under sub-section (5), the Assessing Officer shall, in conformity with the directions, complete, notwithstanding anything to the contrary contained in section 153 or section 153B, the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month i....
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....2022, dated 30-1-2024], titled as "Louis Dreyfus Company India (P.) Ltd. v. Dy. CIT [2024] 159 taxmann.com 244 (Delhi)" in favour of the assessee/petitioner. While dealing with this question, we had observed as follows: "14. The determination which the AO makes in the first instance is recognized to be a draft of the proposed order of assessment by virtue of section 144C(1) of the Act. If the assessee be aggrieved by the proposed order of assessment, it is entitled to file objections before the DRP in accordance with section 144C(2) of the Act. The power of the AO to complete the assessment on the basis of the draft order stands interdicted in case objections have come to be preferred within the 30 day period as contemplated in section 144C(2) of the Act. It is the DRP which thereafter proceeds to decide the objections and frame directions to enable the AO to complete the assessment in accordance with section 144C(5) of the Act. 15. In terms of sub-section (13) of section 144C of the Act, the AO is mandated to complete the assessment "in conformity with the directions" as framed by the DRP. That very provision commands the AO to complete the assessment within one ....
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.... assessment as provided under Section 144C does not envisage or contemplate the interdiction or involvement of the TPO once a directive has been framed by the DRP. The role of the TPO comes to an end once an order as contemplated under Section 92 CA(4) of the Act has come to be framed and remitted to the AO. There was thus no occasion for the TPO having resumed proceedings post the passing of the direction by the DRP on 20 June 2022. 20. Undisputedly, the directive of the DRP came to be uploaded on the ITBA portal on 24 June 2022. It is additionally stated to have been dispatched through Speed Post to the third respondent (TPO) and the fourth respondent (Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless Assessment Centre, New Delhi) on 27 June 2022. It is thereafter that the TPO appears to have passed the order dated 25 July 2022. ** ** ** 22. It is thus manifest that as per the provisions of E-as, 2019, all orders, notices and decisions have to be necessarily uploaded on the ITBA por....
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....For Achampet Solar Private Limited (Authorized Signatory) 7. The information received by the assessee under RTI ACT 2005 is reproduced as under: 8. The Ld. DR has relied upon the order of the Assessing Officer and submitted that order was passed as per the direction of the Hon'ble DRP. We have heard the parties and perused the material available on record. In this case the DRP issued the direction on 14-12-2021 which was received to the Ld. AO on the same day on the ITBA module. The Ld. Officer passed the final assessment order as per the direction of the Hon'ble DRP on 22-02-2022 which was passed after one month and mandatory requirement of the one month was not followed by the Ld. Assessing officer. Thus, the final assessment order is time barred and liable to be set-a-side. 9. Respectfully following the judicial pronouncements cited above we allowed the legal ground no 8 raised by the assessee and set-aside the assessment. Since we have decided the legal ground in favour of the assessee, the other grounds have become academic and keep them open for adjudication. 10. In the result the appeal of the assessee is allowed. Order pronounced in the open court on....