TaxTMI 
TaxTMI 
2021 (2) TMI 1417
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.... (3) r/w 144C (13) of the Income Tax Act, 1961 (in short 'Act') for Assessment Year (A.Y.) 2006-07 in consequence of an order passed by the Dispute Resolution Panel (DRP) dated 29.10.2010, as barred by limitation in terms of Section 153 (2A) of the Act. A direction is also sought to R1 to refund the tax paid/adjusted in settlement of demand raised under the impugned assessment order along with interest. 2. The sequence of dates and events is that, a return of income was filed on 29.11.2006 revised on 19.10.2007, that was selected for scrutiny. A Transfer Pricing Order (TPO) was passed on 31.10.2009 and a draft assessment made by the Assessing Officer on 31.12.2009. As against the draft assessment order, objections were filed before the D....
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....ribunal had been passed on 24.01.2013, and no order of final assessment was passed within the period as stipulated under 153(2A), the proceedings are barred by time. 4. Assuming that the order of the Tribunal dated 24.01.2013 was received prior to the completion of that financial year i.e. on or before 31.03.2013, proceedings became barred on 31.03.2015. If received after 01.04.2013, proceedings would have been barred by 31.03.2016. Since no order was passed prior to 31.03.2016, the petitioner addressed the Chief Commissioner of Income Tax (International Taxation, Bangalore) for annulment of the proceedings and refund of the amount collected. This was followed by further reminders, in between which proceedings were initiated by R2 for as....
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.... to the same within the time stipulated. In terms of sub-section (4), the Assessing Authority is to pass an order of assessment within one month from the end of the month in which the acceptance of the assessee is received or the period for filing of objections expires. 14. Sub-section (5) to (12) set out the procedure for receipt, adjudication and disposal of objections by the DRP. Sub-section (5) states that the DRP shall issue such directions as it may think fit to guide the Assessing Officer is completing the assessment. In issuing the guidelines, as per sub-Section (6) the DRP shall take into account the draft order, objections, evidences, reports of authorities and records as per subsection (6). Sub-section (7) empowers the D....
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....one which includes the determination of Arms Length Price (ALP) of international transactions engaged in by the assessee. The DRP was constituted bearing in mind the necessity for an expert body to look into intricate matters concerning valuation and transfer pricing and it is for this reason that specific timelines have been drawn within the framework of Section 144C to ensure prompt and expeditious finalisation of this special assessment. 16. The purpose is to fast-track a specific type of assessment. This does not however lead to the conclusion that overall time limits have been eschewed in the process. In fact, the argument to the effect that proceedings before the DRP are unfettered by limitation would run counter to the avowe....
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....e Income Tax Appellate Tribunal had set aside the order of assessment and remanded the matter to the file of the Assessing Officer directing him to pass orders de novo. In appeals filed by the revenue under Section 260A, the substantial question raised was "Whether on the facts and in the circumstance of the case and in law, the Tribunal is correct in entertaining the objection that the assessment order is without jurisdiction null and void and unenforceable?" While dismissing the appeals, the Division Bench proceeds on the basis that the draft assessment order ought to have been passed within the time frame stipulated under Section 153(2A) of the Act, also supporting the conclusion arrived at by me. 21. In Nokia India Private Ltd.....
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....eting that exercise was governed by Section 153 (2A) of the Act. 23. It is brought to my notice that the above order has not been accepted by the revenue and has been challenged before the Supreme Court. Delay in filing the SLP has been condoned and leave granted Civil Appeal in C.A.No.6755 of 2018 is pending though without any order of stay.' 7. Nothing has been stated in the course of the arguments in this matter, to persuade me to take a different view from what I have already taken. Additionally, the Bombay High Court, in Vodafone India Services (P) Ltd., Vs. Union of India (361 ITR 531), paragraph 47, states that the process before the DRP is a continuation of assessment proceedings as only thereafter would a final appe....