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Facts
The assessee filed an appeal against the order dated 03.12.2024 passed by the Assessing Officer (AO). The core of the dispute revolves around the final assessment order being passed beyond the statutory limitation period.
Held
The Tribunal held that the final assessment order passed by the AO was indeed barred by limitation. As a consequence, Ground No. 1 raised by the assessee was allowed.
Key Issues
Whether the final assessment order was passed within the prescribed limitation period as stipulated under Section 144C(13) of the Income Tax Act, 1961.
Sections Cited
144C, 144C(13), 144B, 144, 92CA(3), 144C(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “H”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI YOGESH KUMAR U.S.&
O R D E R PER M. BALAGANESH, A. M.: 1. The Assessee CNH Industrial (India) Pvt. Ltd, (hereinafter referred to as ‘assessee) by filing the present appeal sought to set aside the impugned order dated 03.12.2024 passed by the Assessing Officer (AO) under section 144C r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (for short ‘the Act’) inconsonance with the order passed by the Dispute Resolution Panel (DRP) dated 28.09.2024 u/s 144C(5) and order passed by Transfer Pricing Officer (TPO) under section 92CA(3) dated 19.10.2022 for AY 2021-22.
The first issue to be decided in this appeal is as to whether the final assessment order framed by the AO u/s 144 read with section 144C(13) read with section 144B of the Act on 03.12.2024 could be construed as barred by limitation in the facts and circumstances of the instant case.
We have heard the rival submissions and perused the material available on record. In the instant case, the draft assessment order was passed by the ld AO on 29.12.2023. Against the draft assessment order, the assessee filed objections before the ld Dispute Regulation Panel (DRP). The ld DRP issued directions u/s 144C(5) of the Act on 28.09.2024. The assessee received the said direction by email from ld DRP on 28.09.2024. The ld TPO passed an order giving effect to the directions of the ld DRP on 24.10.2024. There is absolutely no dispute with regard to the dates on which the aforesaid orders were passed and served on both the parties. As per the provisions of section 144C(13) of the Act, the final assessment order should be passed by the ld AO within one month from the end of the month in which directions u/s 144C(5) of the Act of the ld DRP were received by the ld AO. The directions issued u/s 144C(5) of the Act by the ld DRP, were sent by email on 28.09.2024 itself, hence the date of receipt of the said directions of the ld DRP by the ld AO would be 28.09.2024. Accordingly, the due date for passing the final assessment order for the ld AO as per section 144C(13) of the Act would be 31.10.2024, whereas the final assessment order in the instant case has been framed on 03.12.2024, which is barred by limitation. Similar issue had cropped up before the coordinate bench of the Delhi Tribunal in the case of Nikon India Limited V. ACIT in Syniverse Technologies Services (India) Pvt Ltd in dated 21.08.2024, Canon India Ltd in ITA No. 1940/Del/2024, among others. In view of the aforesaid observations and respectfully following the judicial precedents, we hold that the final assessment order passed u/s 144 read with section 144C(13) on 03.12.2024 is barred by limitation. Accordingly, Ground No. 1 raised by the assessee is allowed.
Since the relief is granted to the assessee on this preliminary ground No. 1, the other grounds need not be adjudicated and they are left open.
In the result, the appeal of the assessee is allowed and stay Petition of the assessee is hereby dismissed as infructuous.
Order pronounced in the open court on 08/08/2025.