M/S. BIESSE MANUFACTURING COMPANY PRIVATE LIMITED,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), BANGALORE

ITTPA 398/BANG/2023Status: DisposedITAT Bangalore09 September 2026AY 2009-1031 pages
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What were the facts?

The assessee, M/s. Biesse Manufacturing Company Private Limited, filed an appeal before the ITAT, Bangalore, for assessment year 2009-10, challenging an assessment order dated January 24, 2023, passed by the Assessment Unit under section 143(3) read with sections 254 and 144B of the Income-tax Act, 1961. The dispute originated from a transfer pricing adjustment. The assessee's return declared a loss of ₹65,678,867. A TPO adjustment of ₹59,444,884 was made in 2013. After a series of appeals and remands, a fresh TPO order in 2021 determined an adjustment of ₹35,008,310, followed by another TPO order resulting in an adjustment of ₹59,444,884. The Dispute Resolution Panel confirmed the Assessing Officer's action. The final assessment order determined the assessee's total income at ₹26,000,775. The appeal was filed with a delay of 54 days.

What did the Tribunal hold?

The Tribunal condoned the 54-day delay in filing the appeal, finding that the assessee had shown sufficient cause as it was unaware of the assessment order's passing until penalty notices were issued. Regarding the DIN issue (Ground No. 4), the Tribunal dismissed this ground as it was part of a batch of similar matters where arguments were not fully elaborated or were rendered infructuous by other findings. The primary issue of limitation (Grounds Nos. 5 to 7) was decided in favour of the assessee. The Tribunal held that the assessment order dated January 24, 2023, was barred by limitation. It reasoned that the limitation period for completing the assessment, following the Tribunal's order in ITA No. 624/Bangalore/2017, expired on March 31, 2021. The Revenue's contention that Section 153(4) provided an extension was rejected, as a fresh reference to the TPO with prior approval was not required when the issue was restored to the AO for recomputation. Therefore, the assessment order was quashed as barred by limitation. Grounds relating to transfer pricing adjustment (Nos. 12 and 13), denial of hearing opportunity (No. 14), and general grounds (Nos. 1-3, 15) were dismissed as either infructuous or not pressed. Grounds Nos. 9 to 11 were also dismissed as not pressed.

What were the issues?

1. Whether the delay of 54 days in filing the appeal is liable to be condoned on the grounds of sufficient cause, as per Section 253(1) of the Income-tax Act, 1961. - Assessee's contention: The final assessment order was not served electronically or manually, and the assessee became aware of it only upon receiving penalty notices. The delay was bona fide. - Revenue's contention: The assessee had not shown sufficient cause for the delay. 2. Whether the directions issued by the Dispute Resolution Panel on December 23, 2022, are void ab initio and bad in law for not quoting a Document Identification Number (DIN) as mandated by Circular No. 19/2019 dated August 14, 2019. - Assessee's contention: The absence of DIN renders the DRP directions and the consequent assessment order invalid. - Revenue's contention: Not recorded in the judgment. 3. Whether the assessment order dated January 24, 2023, is barred by limitation, considering the directions of the Tribunal in ITA No. 624/Bangalore/2017 to restore the matter to the AO/TPO. - Assessee's contention: The assessment order was passed beyond the permissible limitation period. - Revenue's contention: The assessment order was passed within the extended limitation period under Section 153(4) of the Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254,Section 144B,Section 144C,Section 92CA,Section 153(3),Section 153(5),Section 153(4),Section 253(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

ITTPA 398/BANG/2023 M/S. BIESSE MANUFACTURING COMPANY PRIVATE LIMITED

PER SHRI PRASHANT MAHARISHI, VICE PRESIDENT

1.

IT(TP)A No. 398/Bangalore/2023 has been filed by Beissse

The order continues below.

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