YOONIL INDIA PRIVATE LIMITED,NOIDA vs. DCIT CIRCLE-25(1), DELHI

ITTPA 5264/DEL/2024Status: DisposedITAT Delhi23 January 2026AY 2021-2225 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the impugned Final Assessment Order dated 26/09/2024, pertaining to Assessment Year 2021-22, is barred by limitation as per Section 153 read with Section 144C of the Act. The Tribunal, by respectfully following the binding precedents of the Madras High Court in Roca Bathroom Products (P.) Ltd. and numerous orders of the Co-ordinate Bench of the Hyderabad Tribunal, decided the issue of limitation in favour of the assessee. The Tribunal quashed the impugned Final Assessment Order. Recognizing that the issue of limitation is pending before the Supreme Court in the case of Shelf Drilling Ron Tappmeyer Ltd., the Tribunal granted liberty to the parties to revive the appeal for adjudication of other issues on merits if the Supreme Court's decision necessitates a modification of this order. Other issues raised by the assessee on merits were kept open, subject to the outcome of the Supreme Court's judgment.

What were the facts?

The assessee, Yoonil India Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging the Final Assessment Order dated 26/09/2024, passed by the Deputy Commissioner of Income Tax (DCIT) for Assessment Year 2021-22. The order was passed under Section 143(3) read with Section 144C(13) and Section 144B of the Income Tax Act, 1961. The assessee raised an additional ground of appeal, contending that the Final Assessment Order was time-barred, having been passed beyond the limitation period prescribed under Section 153(1) read with Section 153(4) of the Act. The revenue argued that the issue of limitation, concerning the interplay between Section 144C and Section 153, was pending before the Supreme Court in the case of ACIT Vs. Shelf Drilling Ron Tappmeyer Ltd. and sought deferral of adjudication.

What were the issues?

1. Whether the Final Assessment Order dated 26/09/2024, passed by the Assessing Officer (AO) for Assessment Year 2021-22, is barred by limitation under Section 153 read with Section 144C of the Income Tax Act, 1961, and thus bad in law? Assessee's Contention: The assessee argued that the Final Assessment Order was passed beyond the time frame prescribed under Section 153(1) read with Section 153(4) of the Act. The assessee relied on the judgment of the Madras High Court in Commissioner of Income-tax Vs. Roca Bathroom Products (P.) Ltd. [2022] 445 ITR 537 (Madras) and numerous orders of the Co-ordinate Bench of the Tribunal. Revenue's Contention: The revenue contended that the issue of limitation arising from the interplay between Section 144C and Section 153 of the Act is unsettled and pending adjudication before the Supreme Court in ACIT Vs. Shelf Drilling Ron Tappmeyer Ltd. Therefore, the revenue submitted that deciding the issue at this stage would be premature and requested deferral of adjudication.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 144C,Section 153,Section 153(1),Section 153(4),Section 158AB,Section 253,Section 260A,Section 261,Section 136

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Hearing: 20/01/2026Pronounced: 23/01/2026

PER YOGESH KUMAR, U.S. JM: The captioned appeal is filed by the Assessee challenging the Final

Assessment Order passed u/s 143(3) r.w.s. 144C(13)r.w. Section 144B of the Income Tax Act, 1961 (the Act in short) dated 26/09/2024 pertaining

to the Assessment Year 2021-22. 2. The Assessee raised Additional Ground No. 1 contending that the Final Assessment order dated 26/09/2024 passed by the A.O. is time

barred by limitation and is bad in law, as it has been passed beyond the time frame prescribed under section 153(1) read with section 153(4) of the Income Tax Act

The order continues below.

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