TaxTMI 
TaxTMI 
2026 (6) TMI 858
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....ory time prescribed under section 144C(13) of the Income-tax Act, 1961 (for short "the Act"), the same is ex facie barred by limitation and consequently void ab initio. 3. Elaborating the contention, the learned counsel submitted that section 144C(13) of the Act mandates that the Assessing Officer shall complete the assessment within one month from the end of the month in which the directions of the DRP are received. According to the learned counsel, the Assessing Officer failed to adhere to the mandatory statutory timeline prescribed under section 144C(13) read with section 153 of the Act and, therefore, the assessment order lacks jurisdictional validity. 4. It was further submitted that the directions of the learned DRP were uploaded on the Income Tax Business Application (ITBA) portal on 30.09.2025 and, consequently, the final assessment order ought to have been passed on or before 31.10.2025. However, the impugned order came to be passed only on 27.12.2025, i.e., well beyond the limitation period prescribed under the statute. It was thus contended that the assessment order being time-barred is liable to be quashed as non est in the eyes of law. In support of the aforesaid....
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....itation provisions is fundamental to the rule of law and certainty in tax administration. The ratio laid down therein squarely governs the controversy before us. The relevant finding of the Hon'ble Jurisdictional High Court in the case of Sterling Oil Resources Limited (supra) is reproduced for ready reference: "Application of Section 144C (13) to Present Case : 35. In the instant case, there is no dispute on the dates. The directions of the DRP were received by the AO on 23 December 2014. The DRP with respect to the share transaction which was re-characterized as loan directed the TPO/AO to consider the SBI PLR of FY 2009-10 as arms length price for evaluating the loan transaction. Pursuant to the same, the TPO vide order dated 27 January 2015 informed the AO that the total adjustment as per the directions of the DRP would be Rs.49,39,21,930/-. However, the final assessment order was passed by the AO on 27 February 2015, which according to the Tribunal is beyond the period of one month from the end of the month in which the directions were received. The said period of one month from the end of the month in which the directions of the DRP were received expired on ....
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....of Section 144C (13) cannot be counted from the end of the month in which the transfer pricing officer gives effect of the direction of the DRP under Section 144C (5) of the Act. This is so because Section 153 (5A) provides that the assessment pursuant to the TPO giving effect of the order or direction under Section 263 should be completed within two months from the end of the month in which such an order of the TPO received. If the intention of the legislature was to calculate the time limit provided under Section 144C (13) to start from the TPO's order giving effect to the direction under Section 144C (5) then there would have been a similar provision like Section 153 (5A) of the Act. Therefore, even on this count post direction of the DRP, the AO has to complete the assessment within one month from the end of the month in which the direction of the DRP are received which would include any intervening exercise if at all required to be done. Decisions relied by the Respondent Assessee : 39. Mr Pardiwalla is justified in relying upon the decision of this Court in the case of Vodafone Idea Ltd. (supra) wherein the Co-ordinate bench of this Court held that Section 1....
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....e Delhi High Court after examining the scheme of Section 144C and after relying upon the decision of this Court in the case of Vodafone Idea Ltd. (supra) rejected the contention of the revenue and observed that the procedure of 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 Delhi High Court further observed that the role of the TPO comes to an end once an order as contemplated under Section 92 CA(4) of the Act is framed and remitted to the AO. In our view, even on this count following the decision of the Delhi High Court, the assessment order passed on 27 February 2015 is barred by limitation. 41. Mr. Pardiwalla is also justified in placing reliance on the decision of this Court in case of Renaissance Services BV (supra) where again the final assessment order passed beyond the time limit prescribed under Section 144C (4) was held to be bad in law since the same was passed after the limitation period expired under Section 144C (4) of the Act. Decisions relied by the Appellant-Revenue : 42. We now deal with the decisions relied upon by the....
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....aid to have received the directions of the DRP if same are uploaded on the portal. 46. The Delhi High Court in the case of CIT v. Mavenir Uk Holdings [2024] 167 taxmann.com 321/301 Taxman 340 (Delhi) had an occasion to consider provision of Section 144C (4) which requires the AO to pass within one month from the end of the month in which the assessee intimates his acceptance to draft order or does not file objections with DRP and period for such filing expires. The Delhi High Court held any order passed after the period provided under Section 144C (4) is bad-in-law. 47. The Kerala High Court in the case of Allianz Cornhill Information Services (P) LTD. v. Union of India 2023 SCC OnLine Ker 11076 held that provisions of Section 144C (13) and time-limit provided therein is not a procedural irregularity but mandatory and therefore, order passed beyond the time provided therein is barred by limitation. 48. Before parting we may observe that we have not been shown any judgment of the High Court which has taken contrary view. Conclusion : 49. Importance of time : * Ask runner who looses the medal by fraction of second ; * Ask....