ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE-1(1), CHENNAI, CHENNAI vs. JOYSON ANAND ABHISHEK SAFETY SYSTEMS PVT LTD, KANCHEEPURAM

Q: Which sections of the Income-tax Act were involved?

Section 92CA(1), Section 92CA(3), Section 92CA(3A), Section 143(2), Section 143(3), Section 144C(3), Section 153

ITTPA 26/CHNY/2025Status: DisposedITAT Chennai22 December 2025AY 2016-1724 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the TPO order dated 01.11.2019 is barred by limitation and is void. The Tribunal reasoned that the word 'may' in section 92CA(3A) should be construed as 'shall', and the time period fixed therein must be scrupulously followed. The proviso to the sub-section clarifies the mandatory nature of the time schedule. The Tribunal noted that the date of the TPO order and the Assessment Year were the same as in the case of Saint Gobain India (P.) Ltd. (supra). Respectfully following the binding precedents of the jurisdictional High Court, the Tribunal concluded that the TPO order was barred by limitation and void. Consequently, the Cross Objection filed by the assessee became infructuous. The appeal of the revenue was dismissed.

What were the facts?

The revenue filed an appeal against the order of the CIT(A) for Assessment Year 2016-17. The assessee, Joyson Anand Abhishek Safety Systems Pvt. Ltd., engaged in manufacturing automotive safety components, had international transactions with its Associated Enterprises. The Assessing Officer (AO) referred the case to the Transfer Pricing Officer (TPO) under section 92CA(1) of the Income-tax Act, 1961. The TPO passed an order on 01.11.2019, proposing a transfer pricing adjustment of Rs.6,12,02,043/-. The AO passed the final assessment order on 30.01.2020, determining total loss at Rs.6,60,78,720/-. The assessee appealed to the CIT(A), raising an additional ground that the TPO's order was barred by limitation under section 92CA(3A), making the consequential assessment void ab initio. The CIT(A) allowed this ground, holding the TPO's order as void.

What were the issues?

1. Whether, on the facts and circumstances of the case, the CIT(A) was correct in treating the TPO's order dated 01.11.2019 as void and barred by limitation, ignoring that the last date for the TPO to pass the order was 01.11.2019, as per section 92CA(3A) of the Act, which requires the order to be passed at least sixty days prior to 31.12.2019 (the due date for assessment for AY 2016-17). Assessee's contentions: The TPO order dated 01.11.2019 was barred by limitation under section 92CA(3A) of the Act, making the consequential assessment void ab initio. The time limit for passing the assessment order expired on 31.12.2019, and the TPO order was required to be passed at least 60 days prior to this. Revenue's contentions: The CIT(A) erred in treating the TPO's order dated 01.11.2019 as void and barred by limitation. The revenue argued that counting 60 days backward from 31.12.2019 (31 days in December and 29 days in November up to 02.11.2019) leads to 01.11.2019 as the last date to pass the order under section 92CA(3).

Which sections of the Income-tax Act were involved?

Section 92CA(1),Section 92CA(3),Section 92CA(3A),Section 143(2),Section 143(3),Section 144C(3),Section 153

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S.R.RAGHUNATHA

Hearing: 18.12.2025Pronounced: 22.12.2025

आदेश / O R D E R

PER MANU KUMAR GIRI, JM MANU KUMAR GIRI, JM:

This appeal [IT(TP)A No.26/Chny/2025] IT(TP)A No.26/Chny/2025] filed by the revenue filed by the revenue and

Cross Objection [CO. No.85/Chny/2025] CO. No.85/Chny/2025] filed by the assessee are the assessee are directed

against the order of the Ld. Commissioner of Income Tax (Appeals) against the order of the Ld. Commissioner of Income Tax (Appeals) against the order of the Ld. Commissioner of Income Tax (Appeals),

[CIT(A)] Chennai-16 dated dated 11.07.2025 for Assessment Year 201 for Assessment Year 2016-17.

The assessee, Takata India Private Limited, is a joint venture between Takata India Private Limited, is a joint venture between Takata India Private Limited, is a joint venture between

Asia Investments Private Limited and T Asia Investments Private Limited and Takata Corporation, Japan, engaged akata Corporation, Japan, engaged

in the manufacture of automotive safety components such as seat belts in the manufacture of automotive safety components such as seat belts in the manufacture of automotive safety components such as seat belts

and airbags. During the relevant previous year, the assessee entered into and airbags. During the relevant previous year, the assessee entered into and airbags. During the relevant previous year, the assessee entered into

international transactions with its Associated Enterprises (“AEs”) and international transactions with its Associated Enterprises (“AEs”) and international transactions with its Associated Enterprises (“AEs”) and

maintained prescribed transfer pricing documentation. ned prescribed transfer pricing documentation.

The return of income for AY 2016 The return of income for AY 2016-17 was originally filed and 17 was originally filed and

subsequently subsequently revised revised on on 24.11.2017, 24.11.2017, declaring declaring a a total total loss loss

of Rs.12,72,80,767/-. The case was selected for scrutiny and notice under . The case was selected for scrutiny and notice under . The case was selected for scrutiny and notice under

section 143(2) of the Income 143(2) of the Income-tax Act, 1961 (“the Act”) was issued. tax Act, 1961 (“the Act”) was issued.

During the course of assessment proceedings, the Assessing Officer During the course of assessment proceedings, the Assessing Officer During the course of assessment proceedings, the Assessing Officer

(“AO”) made a reference under section 92CA(1) of the Act to the Transfer (“AO”) made a reference under section 92CA(1) of the Act to the Transfer (“AO”) made a reference under section 92CA(1) of the Act to the Transfer

Pricing Officer (“TPO”) for determination of the arm’s le Pricing Officer (“TPO”) for determination of the arm’s length price (“ALP”) ngth price (“ALP”)

of international transactions entered into by the assessee with its AEs. of international transactions entered into by the assessee with its AEs. of international transactions entered into by the assessee with its AEs.

The TPO passed an order under section 92CA(3) dated 01.11.2019, TPO passed an order under section 92CA(3) dated 01.11.2019, TPO passed an order under section 92CA(3) dated 01.11.2019,

proposing transfer pricing adjustment of proposing transfer pricing adjustment of Rs.6,12,02,043/ /-, primarily on

account of price penetration account of price penetration adjustment and working capital adjustment. adjustment and working capital adjustment.

Based on the said TPO order, the AO passed the final assessment order Based on the said TPO order, the AO passed the final assessment order Based on the said TPO order, the AO passed the final assessment order

under section 143(3) 143(3) 143(3) read read read with with with section section section 144C(3)on 144C(3)on 144C(3)on 30.01.2020,

determining total loss at determining total loss at Rs.6,60,78,720/-.

Aggrieved, the assessee preferred Aggrieved, the assessee preferred appeal before the Ld. CIT(A). appeal before the Ld. CIT(A).

During During During appellate appellate appellate proceedings, proceedings, proceedings, the the the assessee assessee assessee raised raised raised additional

grounds contending that the TPO order dated 01.11.2019 was contending that the TPO order dated 01.11.2019 was contending that the TPO order dated 01.11.2019 was barred by

limitation in terms of section in terms of section 92CA(3A) of the Act, and therefore, the of the Act, and therefore, the

consequential assessment consequential assessment was void ab initio.

The Ld. CIT(A) allowed additional ground of the assessee and held allowed additional ground of the assessee and held allowed additional ground of the assessee and held

that the TPO order dated 01.11.2019 is barred by limitation and is treated that the TPO order dated 01.11.2019 is barred by limitation and is treated that the TPO order dated 01.11.2019 is barred by limitation and is treated

as void.

Before us, the revenue revenue has raised the following ground: the following ground:

Whether on the facts an Whether on the facts and circumstances of the case d circumstances of the case, the ld.CIT(A) is correct is correct in treating the TPO’s order dat in treating the TPO’s order dated 01.11.2019 as void 01.11.2019 as void and barred by limitation ignoring the ignoring the fact that the last date for the fact that the last date for the TPO to pass the order will be to pass the order will be 01.11.2019 for the re for the reason that as per the provisions ons of the section 92CA(3A), t CA(3A), the Order under section 92CA(3) m CA(3) may be

made at any time before sixty days prior time before sixty days prior to 31.12.2019 to 31.12.2019 for AY 2016-17 and by counting 17 and by counting 60 days backward from days backward from 31.12.2019, 31 days in December 2019 and 29 days in 31.12.2019, 31 days in December 2019 and 29 days in 31.12.2019, 31 days in December 2019 and 29 days in November 2019 up to 02.11.2019, from 30.11.2019, the November 2019 up to 02.11.2019, from 30.11.2019, the November 2019 up to 02.11.2019, from 30.11.2019, the last date to pass the order u/s 92CA(3) would be last date to pass the order u/s 92CA(3) would be last date to pass the order u/s 92CA(3) would be 01.11.2019.

The Ld. Counsel for the assessee submitted that for AY 2016 The Ld. Counsel for the assessee submitted that for AY 2016 The Ld. Counsel for the assessee submitted that for AY 2016-17, as

per section 92CA(3A) (as applicable for the year), the TPO order was (as applicable for the year), the TPO order was (as applicable for the year), the TPO order was

required to be passed at least 60 days prior to the time at least 60 days prior to the time-limit prescribed limit prescribed

under section 153 for completion of assessment. for completion of assessment. It was contended that It was contended that

the time-limit for passing the assessment order expired on limit for passing the assessment order expired on limit for passing the assessment order expired on 31.12.2019,

and therefore, the TPO order ought to have been passed on or and therefore, the TPO order ought to have been passed on or and therefore, the TPO order ought to have been passed on or

before 31.10.2019. Since the TPO order was passed on 31.10.2019. Since the TPO order was passed on 01.11.2019, the 01.11.2019, the

same was barred by limitation and void. same was barred by limitation and void. The ld.AR placed reliance on the

judgments of the Hon’ble Madras High Cou Hon’ble Madras High Court in Pfizer Healthcare India Pfizer Healthcare India

(P.) Ltd. v. DCIT [2021] 124 [2021] 124 taxmann.com 536 (Madras) 536 (Madras) and Deputy

Commissioner of Income Commissioner of Income-tax vs. Saint Gobain India (P.) Ltd. [2022] 137 tax vs. Saint Gobain India (P.) Ltd. [2022] 137

taxmann.com 215 (Madras)/[2022] 444 ITR 636 taxmann.com 215 (Madras)/[2022] 444 ITR 636 (Madras)[31 (Madras)[31-03-2022].

Per contra, the Ld. DR submitted that the assessment was completed he Ld. DR submitted that the assessment was completed he Ld. DR submitted that the assessment was completed

within time and the TPO order was valid. within time and the TPO order was valid. He also referred General clauses He also referred General clauses

Act and provisions of the Act. Act and provisions of the Act. He further stated that the ld.CIT(A) ignor the ld.CIT(A) ignored

the fact that the last date for the TPO to pass the order will be the fact that the last date for the TPO to pass the order will be the fact that the last date for the TPO to pass the order will be

01.11.2019 for the reason that as per the provisons of the section 01.11.2019 for the reason that as per the provisons of the section 01.11.2019 for the reason that as per the provisons of the section

92CA(3A), the Order under section 92CA(3) may be made at any time 92CA(3A), the Order under section 92CA(3) may be made at any time 92CA(3A), the Order under section 92CA(3) may be made at any time

before sixty days prior to 31.12.2019 for AY 2016 before sixty days prior to 31.12.2019 for AY 2016-17 and by counting 60

days backward from 31.12.2019, 31 days in December 2019 and 29 days days backward from 31.12.2019, 31 days in December 2019 and 29 days days backward from 31.12.2019, 31 days in December 2019 and 29 days

in November 2019 up to 02.11.2019, from 30.11.2019, the last date to in November 2019 up to 02.11.2019, from 30.11.2019, the last date to in November 2019 up to 02.11.2019, from 30.11.2019, the last date to

pass the order u/s 92CA(3) would be 01.11.2019. pass the order u/s 92CA(3) would be 01.11.2019.

We have carefully considered the rival submissi We have carefully considered the rival submissions and perused the ons and perused the

material on record. The undisputed dates The undisputed dates for AY 2016-17 are are as under:

(a) Due date for completion of assessment under section 153 Due date for completion of assessment under section 153 Due date for completion of assessment under section 153 of the Act is 31.12.2019. 31.12.2019. (b) Date of TPO order under section 92CA(3) Date of TPO order under section 92CA(3) is 01.11.2019 01.11.2019.

As per section 92CA(3A), the 92CA(3A), the TPO order must be passed TPO order must be passed at least 60

days prior to the date on which the time days prior to the date on which the time-limit for completion of limit for completion of

assessment expires.

Applying the above provision, the TPO order in the present case Applying the above provision, the TPO order in the present case Applying the above provision, the TPO order in the present case

ought to have been passed ought to have been passed on or before 31.10.2019. Since the orde on or before 31.10.2019. Since the order was

passed on 01.11.2019, it is clearly 01.11.2019, it is clearly beyond the period of limitation. beyond the period of limitation.

The Hon’ble Madras High Court in The Hon’ble Madras High Court in Pfizer Healthcare India (P.) Pfizer Healthcare India (P.)

Ltd. (supra) has categorically held that an order passed beyond the (supra) has categorically held that an order passed beyond the (supra) has categorically held that an order passed beyond the

limitation prescribed under section 92CA(3A) is limitation prescribed under section 92CA(3A) is void and unenforceable, void and unenforceable,

and any consequential adjustment cannot survive. and any consequential adjustment cannot survive.

Similarly, in Saint Gobain India (P.) Ltd. Saint Gobain India (P.) Ltd. (supra), the Hon’ble High (supra), the Hon’ble High

Court (Division Bench) has affirmed that once the TPO order is barred by has affirmed that once the TPO order is barred by has affirmed that once the TPO order is barred by

limitation, the AO is bound to dele bound to delete the transfer pricing adjustment. te the transfer pricing adjustment. The

Hon’ble Jurisdictional High Court has Hon’ble Jurisdictional High Court has been held as under:

4.1 The writ petitioner is a private limited company, engaged 4.1 The writ petitioner is a private limited company, engaged 4.1 The writ petitioner is a private limited company, engaged in the business of manufacturing generic drugs, exporting the in the business of manufacturing generic drugs, exporting the in the business of manufacturing generic drugs, exporting the same same to to group group entities entities and and contrac contract t research research and and development services for pharmaceutical products. For the development services for pharmaceutical products. For the development services for pharmaceutical products. For the assessment year 2016 assessment year 2016-2017, they filed their return of income 2017, they filed their return of income on 30-11-2016. On receipt of the same, a notice dated 18 2016. On receipt of the same, a notice dated 18 2016. On receipt of the same, a notice dated 18-7- 2017 was issued to the writ petitioner under section 143(2) 2017 was issued to the writ petitioner under section 143(2) 2017 was issued to the writ petitioner under section 143(2) of the Act. Subsequently, a reference was made by the the Act. Subsequently, a reference was made by the the Act. Subsequently, a reference was made by the second appellant to the first appellant for determining the second appellant to the first appellant for determining the second appellant to the first appellant for determining the arm's length price of the international transactions reported arm's length price of the international transactions reported arm's length price of the international transactions reported in Form No. 3CEB. On 10 in Form No. 3CEB. On 10-12-2018, a notice under section 2018, a notice under section 92CA(2) of the Act was issu 92CA(2) of the Act was issued by the first appellant calling ed by the first appellant calling upon the writ petitioner to furnish certain particulars. The upon the writ petitioner to furnish certain particulars. The upon the writ petitioner to furnish certain particulars. The first appellant, thereafter, passed the order under section first appellant, thereafter, passed the order under section first appellant, thereafter, passed the order under section 92CA(3) of the Act on 1 92CA(3) of the Act on 1-11-2019, which according to the writ 2019, which according to the writ petitioner, was passed, after the time l petitioner, was passed, after the time limit prescribed for imit prescribed for passing such order until 31 passing such order until 31-10-2019. Therefore, the order 2019. Therefore, the order dated 1-11-2019 passed by the first appellant is beyond the 2019 passed by the first appellant is beyond the 2019 passed by the first appellant is beyond the period of limitation as stipulated under section 92CA(3A) of period of limitation as stipulated under section 92CA(3A) of period of limitation as stipulated under section 92CA(3A) of the Act. ………………………………………………………… …………………………………………………………………………………………………… …………………………………………

12.3 In the cases before us, the order of the TPO has been the cases before us, the order of the TPO has been the cases before us, the order of the TPO has been challenged on the ground of limitation, which goes to the root challenged on the ground of limitation, which goes to the root challenged on the ground of limitation, which goes to the root of authority/jurisdiction. It is not in dispute that what was of authority/jurisdiction. It is not in dispute that what was of authority/jurisdiction. It is not in dispute that what was disputed is only the addition made on account of the order of disputed is only the addition made on account of the order of disputed is only the addition made on account of the order of the TPO. There is the TPO. There is no dispute on facts about the date on which no dispute on facts about the date on which the order was passed, which is 1 the order was passed, which is 1-11-2019 in all the cases or 2019 in all the cases or the receipt of such orders for the purpose of calculation of the receipt of such orders for the purpose of calculation of the receipt of such orders for the purpose of calculation of limitation. What was called upon to be adjudicated is the limitation. What was called upon to be adjudicated is the limitation. What was called upon to be adjudicated is the interpretation of the provision, interpretation of the provision, which is a pure question of which is a pure question of law in the present cases. Therefore, we are of the view that law in the present cases. Therefore, we are of the view that law in the present cases. Therefore, we are of the view that the writ petitions are maintainable and has been rightly the writ petitions are maintainable and has been rightly the writ petitions are maintainable and has been rightly entertained by the Learned Judge. entertained by the Learned Judge.

Legal position 13.1 Secondly, we shall deal with the provisions of law, 13.1 Secondly, we shall deal with the provisions of law, 13.1 Secondly, we shall deal with the provisions of law, for determination of the issue arisen in the instant cases. Much determination of the issue arisen in the instant cases. Much determination of the issue arisen in the instant cases. Much reliance has been placed upon the provisions of the General reliance has been placed upon the provisions of the General reliance has been placed upon the provisions of the General Clauses Act on the side of the appellants/Revenue to contend Clauses Act on the side of the appellants/Revenue to contend Clauses Act on the side of the appellants/Revenue to contend that in computation of time limit, the day referred to as that in computation of time limit, the day referred to as that in computation of time limit, the day referred to as "from" has to be excluded and the day referred to as "to" has o be excluded and the day referred to as "to" has o be excluded and the day referred to as "to" has to be included. It is the contention of the Revenue that if 31 to be included. It is the contention of the Revenue that if 31 to be included. It is the contention of the Revenue that if 31- 12-2019 is included, then the last date for passing the order 2019 is included, then the last date for passing the order 2019 is included, then the last date for passing the order by the TPO would be 1 by the TPO would be 1-11-2019 and hence all the orders 2019 and hence all the orders would be in time. This sta would be in time. This stand is taken by the Revenue by nd is taken by the Revenue by treating 1-1-2020 as the last date for passing orders under 2020 as the last date for passing orders under 2020 as the last date for passing orders under section 153 of the Income section 153 of the Income-tax Act. Before dealing with the tax Act. Before dealing with the said contention, it is apropos to refer to the relevant said contention, it is apropos to refer to the relevant said contention, it is apropos to refer to the relevant provisions. 13.2 Section 92CA of the Income 13.2 Section 92CA of the Income-tax Act, 1961, deals with Act, 1961, deals with Reference to Transfer Pricing Officer and the same reads as Reference to Transfer Pricing Officer and the same reads as Reference to Transfer Pricing Officer and the same reads as under:

"Section 92CA. (1) Where any person, being the assessee, "Section 92CA. (1) Where any person, being the assessee, "Section 92CA. (1) Where any person, being the assessee, has entered into an international transaction or specified has entered into an international transaction or specified has entered into an international transaction or specified domestic transaction in any previous year, and the domestic transaction in any previous year, and the Assessing Assessing Officer considers it necessary or expedient so to do, he may, Officer considers it necessary or expedient so to do, he may, Officer considers it necessary or expedient so to do, he may, with the previous approval of the Principal Commissioner or with the previous approval of the Principal Commissioner or with the previous approval of the Principal Commissioner or Commissioner refer the computation of the arm's length price Commissioner refer the computation of the arm's length price Commissioner refer the computation of the arm's length price in relation to the said international transaction or specified in relation to the said international transaction or specified in relation to the said international transaction or specified domestic transaction under section 92C to the Transfer domestic transaction under section 92C to the Transfer domestic transaction under section 92C to the Transfer Pricing Officer (2) Where a reference is made under sub (2) Where a reference is made under sub-section (1), the section (1), the Transfer Pricing Officer shall serve a notice on the assessee Transfer Pricing Officer shall serve a notice on the assessee Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date requiring him to produce or cause to be produced on a date requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee specified therein, any evidence on which the assessee specified therein, any evidence on which the assessee may rely in support of the computation made by him of the may rely in support of the computation made by him of the may rely in support of the computation made by him of the arm's length price in relation to the international transaction arm's length price in relation to the international transaction arm's length price in relation to the international transaction or specified domestic transaction referred to in sub or specified domestic transaction referred to in sub or specified domestic transaction referred to in sub-section (1). 2A. Where any (1). 2A. Where any other international transaction other than other international transaction other than an international transaction referred under sub an international transaction referred under sub-section (1) section (1) comes to the notice of the Transfer Pricing Officer during the comes to the notice of the Transfer Pricing Officer during the comes to the notice of the Transfer Pricing Officer during the course of the proceedings before him, the provisions of this course of the proceedings before him, the provisions of this course of the proceedings before him, the provisions of this Chapter shall apply, as if su Chapter shall apply, as if such other international transaction ch other international transaction

is an international transaction referred to him under sub is an international transaction referred to him under sub is an international transaction referred to him under sub- section (1). 2B. Where in respect of an international transaction the 2B. Where in respect of an international transaction the 2B. Where in respect of an international transaction the assessee has not furnished the report under section 92E and assessee has not furnished the report under section 92E and assessee has not furnished the report under section 92E and such transaction comes to the not such transaction comes to the notice of the Transfer Pricing ice of the Transfer Pricing Officer during the course of the proceeding before him, the Officer during the course of the proceeding before him, the Officer during the course of the proceeding before him, the provisions of this Chapter shall apply as if such transaction is provisions of this Chapter shall apply as if such transaction is provisions of this Chapter shall apply as if such transaction is an international transaction referred to him under sub an international transaction referred to him under sub an international transaction referred to him under sub-section (1) 2C. Nothing contained in sub 2C. Nothing contained in sub-section (2B) shall empower the (2B) shall empower the Assessing Officer either to assess or reassess under section Assessing Officer either to assess or reassess under section Assessing Officer either to assess or reassess under section 147 or pass an order enhancing the assessment or reducing a 147 or pass an order enhancing the assessment or reducing a 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of refund already made or otherwise increasing the liability of refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment the assessee under section 154, for any assessment the assessee under section 154, for any assessment year, proceedings for which have been completed before the 1st proceedings for which have been completed before the 1st proceedings for which have been completed before the 1st day of July 2012. (3) On the date specified in the notice under sub (3) On the date specified in the notice under sub-section (2), section (2), or as soon thereafter as may be, after hearing such evidence or as soon thereafter as may be, after hearing such evidence or as soon thereafter as may be, after hearing such evidence as the assessee may produce, including any informa as the assessee may produce, including any informa as the assessee may produce, including any information or documents referred to in sub documents referred to in sub-section (3) of section 92D and section (3) of section 92D and after considering such evidence as the Transfer Pricing Officer after considering such evidence as the Transfer Pricing Officer after considering such evidence as the Transfer Pricing Officer may require on any specified points and after taking into may require on any specified points and after taking into may require on any specified points and after taking into account all relevant materials which he has gathered, the account all relevant materials which he has gathered, the account all relevant materials which he has gathered, the Transfer Pricing Officer shall, by order in writing, determine Pricing Officer shall, by order in writing, determine Pricing Officer shall, by order in writing, determine the arm's length price in relation to the international the arm's length price in relation to the international the arm's length price in relation to the international transaction or specified domestic transaction in accordance transaction or specified domestic transaction in accordance transaction or specified domestic transaction in accordance with sub-section (3) of section 92C and send a copy of his section (3) of section 92C and send a copy of his section (3) of section 92C and send a copy of his order to the Assessing Off order to the Assessing Officer and to the assessee. 3A. Where icer and to the assessee. 3A. Where a reference was made under sub a reference was made under sub-section (1) before the 1st section (1) before the 1st day of June 2007 but the order under sub day of June 2007 but the order under sub-section (3) has not section (3) has not been made by the Transfer Pricing Officer before the said been made by the Transfer Pricing Officer before the said been made by the Transfer Pricing Officer before the said date, or a reference under sub date, or a reference under sub-section (1) is made on or is made on or after the 1st day of June, 2007, an order under sub after the 1st day of June, 2007, an order under sub after the 1st day of June, 2007, an order under sub-section (3) may be made at any time before sixty days prior to the (3) may be made at any time before sixty days prior to the (3) may be made at any time before sixty days prior to the date on which the period of limitation, referred to in section date on which the period of limitation, referred to in section date on which the period of limitation, referred to in section 153 or as the case may be, in section 153B for making the 153 or as the case may be, in section 153B for making the 153 or as the case may be, in section 153B for making the order of assessment or reassessment or recomputation or der of assessment or reassessment or recomputation or der of assessment or reassessment or recomputation or fresh assessment, as the case may be, expires. fresh assessment, as the case may be, expires. Provided that in the circumstances referred to in clause (ii) or Provided that in the circumstances referred to in clause (ii) or Provided that in the circumstances referred to in clause (ii) or clause (x) of Explanation 1 to section 153, if the period of clause (x) of Explanation 1 to section 153, if the period of clause (x) of Explanation 1 to section 153, if the period of limitation available to the T limitation available to the Transfer Pricing Officer for making ransfer Pricing Officer for making an order is less than sixty days, such remaining period shall an order is less than sixty days, such remaining period shall an order is less than sixty days, such remaining period shall

be extended by sixty days and the aforesaid period of be extended by sixty days and the aforesaid period of be extended by sixty days and the aforesaid period of limitation shall be deemed to have been extended accordingly limitation shall be deemed to have been extended accordingly limitation shall be deemed to have been extended accordingly (4) On receipt of the order under sub (4) On receipt of the order under sub-section (3), the n (3), the Assessing Officer shall proceed to compute the total income Assessing Officer shall proceed to compute the total income Assessing Officer shall proceed to compute the total income of the assessee under sub of the assessee under sub-section (4) of section 92C in section (4) of section 92C in conformity with the arm's length price as so determined by conformity with the arm's length price as so determined by conformity with the arm's length price as so determined by the Transfer Pricing Officer the Transfer Pricing Officer (5) With a view to rectifying any mistake (5) With a view to rectifying any mistake apparent from the apparent from the record, the Transfer Pricing Officer may amend any order record, the Transfer Pricing Officer may amend any order record, the Transfer Pricing Officer may amend any order passed by him under sub passed by him under sub-section (3), and the provisions of section (3), and the provisions of section 154 shall, so far as may be, apply accordingly section 154 shall, so far as may be, apply accordingly section 154 shall, so far as may be, apply accordingly (6) Where any amendments is made by the Transfer Pricing (6) Where any amendments is made by the Transfer Pricing (6) Where any amendments is made by the Transfer Pricing Officer under sub nder sub-section (5), he shall send a copy of his section (5), he shall send a copy of his order to the Assessing Officer who shall thereafter proceed to order to the Assessing Officer who shall thereafter proceed to order to the Assessing Officer who shall thereafter proceed to amend the order of assessment in conformity with such order amend the order of assessment in conformity with such order amend the order of assessment in conformity with such order of the Transfer Pricing Officer of the Transfer Pricing Officer (7) The Transfer Pricing Officer may, for the purpo (7) The Transfer Pricing Officer may, for the purpo (7) The Transfer Pricing Officer may, for the purpose of determining the arm's length price under this section, determining the arm's length price under this section, determining the arm's length price under this section, exercise all or any of the powers specified in clauses (a) to exercise all or any of the powers specified in clauses (a) to exercise all or any of the powers specified in clauses (a) to (d) of sub-section (1) of section 131 or sub section (1) of section 131 or sub-section (6) of section (6) of section 133 or section 133A section 133 or section 133A Explanation:- For the purposes of this sectio For the purposes of this section. Transfer n. Transfer Pricins Officer means a Joint Commissioner or Deputy Pricins Officer means a Joint Commissioner or Deputy Pricins Officer means a Joint Commissioner or Deputy Commissioner or Assistant Commissioner authorised by the Commissioner or Assistant Commissioner authorised by the Commissioner or Assistant Commissioner authorised by the Board to perform all or any of the functions of the Assessing Board to perform all or any of the functions of the Assessing Board to perform all or any of the functions of the Assessing Officer specified in sections 92C and 92D in respect of any Officer specified in sections 92C and 92D in respect of any Officer specified in sections 92C and 92D in respect of any person or class of persons." ass of persons."

13.3 Section 153 of the Income 13.3 Section 153 of the Income-tax Act, reads as follows : tax Act, reads as follows : "Section 153. (1) No Order of assessment shall be made "Section 153. (1) No Order of assessment shall be made "Section 153. (1) No Order of assessment shall be made under section 143 or section 144 at any time after expiry of under section 143 or section 144 at any time after expiry of under section 143 or section 144 at any time after expiry of twenty one months from the end of the assessment year in twenty one months from the end of the assessment year in twenty one months from the end of the assessment year in which the income was first assessable. the income was first assessable. Provided further that in respect of an order of assessment Provided further that in respect of an order of assessment Provided further that in respect of an order of assessment relating to the assessment year commencing on or after the relating to the assessment year commencing on or after the relating to the assessment year commencing on or after the 1st day of April 2019, the provisions of this sub 1st day of April 2019, the provisions of this sub-section shall section shall have effect, as if for the words "twenty have effect, as if for the words "twenty-one months, the one months, the words "eighteen months" had been substituted. words "eighteen months" had been substituted. (2) No order of assessment, reassessment or recomputation (2) No order of assessment, reassessment or recomputation (2) No order of assessment, reassessment or recomputation shall be made under section 147 after the expiry of nine shall be made under section 147 after the expiry of nine shall be made under section 147 after the expiry of nine months from the end of the financial year in which the notice months from the end of the financial year in which the notice months from the end of the financial year in which the notice under section 148 under section 148 was served.

Provided that where the notice under section 148 is served Provided that where the notice under section 148 is served Provided that where the notice under section 148 is served on or after the 1st day of April 2019, the provisions of this on or after the 1st day of April 2019, the provisions of this on or after the 1st day of April 2019, the provisions of this sub-section shall have effect, as if for the words "nine section shall have effect, as if for the words "nine section shall have effect, as if for the words "nine months", the words "twelve months" had been substituted. months", the words "twelve months" had been substituted. months", the words "twelve months" had been substituted. (3) Notwithstanding anything contained in sub ithstanding anything contained in sub-sections (1) sections (1) and (2), an order of fresh assessment in pursuance of an and (2), an order of fresh assessment in pursuance of an and (2), an order of fresh assessment in pursuance of an order under section 254 or section 263 or section 264, order under section 254 or section 263 or section 264, order under section 254 or section 263 or section 264, setting aside or cancelling an assessment may be made at setting aside or cancelling an assessment may be made at setting aside or cancelling an assessment may be made at any time before the expiry of nine m any time before the expiry of nine months from the end of onths from the end of the financial year in which the order under section 254 is the financial year in which the order under section 254 is the financial year in which the order under section 254 is received by the Principal Chief Commissioner or Chief received by the Principal Chief Commissioner or Chief received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, Commissioner or Principal Commissioner or Commissioner or, Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section as the case may be, the order under section 263 or section as the case may be, the order under section 263 or section 264 is is is passed passed passed by by by the the the Principal Principal Principal Commissioner Commissioner Commissioner or or or Commissioner. Provided that where the order under section 254 is received Provided that where the order under section 254 is received Provided that where the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner by the Principal Chief Commissioner or Chief Commissioner by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case or Principal Commissioner or Commissioner or, as the case or Principal Commissioner or Commissioner or, as the case may be, the order unde may be, the order under section 263 or 264 is passed by the r section 263 or 264 is passed by the Principal Commissioner or Commissioner on or after the 1st Principal Commissioner or Commissioner on or after the 1st Principal Commissioner or Commissioner on or after the 1st day of April 2019, the provisions of this sub day of April 2019, the provisions of this sub-section shall section shall have effect, as if for the words "nine months", the words have effect, as if for the words "nine months", the words have effect, as if for the words "nine months", the words "twelve months" had been substituted. "twelve months" had been substituted. (4) Notwithstanding anything contained in sub Notwithstanding anything contained in sub-sections (1), sections (1), (2) and (3), where a reference under sub (2) and (3), where a reference under sub-section (1) of section (1) of section 92CA is made during the course of the proceeding for section 92CA is made during the course of the proceeding for section 92CA is made during the course of the proceeding for the assessment or reassessment, the period available for the assessment or reassessment, the period available for the assessment or reassessment, the period available for completion of assessment completion of assessment or reassessment, as the case may or reassessment, as the case may be, under the said sub be, under the said sub-sections (1), (2) and (3) shall be sections (1), (2) and (3) shall be extended by twelve months extended by twelve months ……… ...……. Provided further that where the period available to the Provided further that where the period available to the Provided further that where the period available to the Transfer Pricing Officer is extended to sixty days in Transfer Pricing Officer is extended to sixty days in Transfer Pricing Officer is extended to sixty days in accordance with th accordance with the proviso to sub-section (3A) of section section (3A) of section 92CA and the period of limitation available to the Assessing 92CA and the period of limitation available to the Assessing 92CA and the period of limitation available to the Assessing Officer for making an order of assessment, reassessment or Officer for making an order of assessment, reassessment or Officer for making an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days, recomputation, as the case may be, is less than sixty days, recomputation, as the case may be, is less than sixty days, such remaining period shall be exte such remaining period shall be extended to sixty days and nded to sixty days and the aforesaid period of limitation shall be deemed to be the aforesaid period of limitation shall be deemed to be the aforesaid period of limitation shall be deemed to be extended accordingly." extended accordingly."

13.4 Section 9 of the General Clauses Act reads as follows; 13.4 Section 9 of the General Clauses Act reads as follows; 13.4 Section 9 of the General Clauses Act reads as follows; "9. Commencement and termination of time. "9. Commencement and termination of time. "9. Commencement and termination of time.—(1) In any any Central Central Act]or Act]or Regulation Regulation made made after after the the commencement of this Act, it shall be sufficient, for the commencement of this Act, it shall be sufficient, for the commencement of this Act, it shall be sufficient, for the purpose of excluding the first in a series of days or any purpose of excluding the first in a series of days or any purpose of excluding the first in a series of days or any other period of time, to use the word "from", and, for other period of time, to use the word "from", and, for other period of time, to use the word "from", and, for the purpose of including the last in a series of days or the purpose of including the last in a series of days or the purpose of including the last in a series of days or any other period of time, to use the word "to": ny other period of time, to use the word "to": >Provided that nothing in this section shall apply to >Provided that nothing in this section shall apply to >Provided that nothing in this section shall apply to any act or proceeding to which the "Indian Limitation any act or proceeding to which the "Indian Limitation any act or proceeding to which the "Indian Limitation Act, 1877 (15 of 1877)", applies Act, 1877 (15 of 1877)", applies (2) This section applies also to all Central Acts made (2) This section applies also to all Central Acts made (2) This section applies also to all Central Acts made after the thi after the third day of January, 1868, and to all rd day of January, 1868, and to all Regulations made on or after the fourteenth day of Regulations made on or after the fourteenth day of Regulations made on or after the fourteenth day of January, 1887." January, 1887."

14.

In the present cases, the Financial Year is 2015 14. In the present cases, the Financial Year is 2015 14. In the present cases, the Financial Year is 2015-16 and the assessment year is 2016 the assessment year is 2016-17. The period of 21 months 17. The period of 21 months would commence on 31 would commence on 31-3-2017, the assessment year ended essment year ended on 31-12-2018 normally and the extended period would end 2018 normally and the extended period would end 2018 normally and the extended period would end on 31-12-2019 and not on 1 2019 and not on 1-1-2020. The contention of the 2020. The contention of the appellants that the time to pass the assessment order would appellants that the time to pass the assessment order would appellants that the time to pass the assessment order would end at 00.00 hours on 1 end at 00.00 hours on 1-1-2020, is fallacious as 31- -12-2019 would end at 23:59:59 and 00.00 is regarded as the next ld end at 23:59:59 and 00.00 is regarded as the next ld end at 23:59:59 and 00.00 is regarded as the next day. A day for the purpose of reckoning the date ends before day. A day for the purpose of reckoning the date ends before day. A day for the purpose of reckoning the date ends before the stroke of midnight and the next date would commence at the stroke of midnight and the next date would commence at the stroke of midnight and the next date would commence at midnight immediately after the expiry of the previous day. midnight immediately after the expiry of the previous day. midnight immediately after the expiry of the previous day. The last date would be t The last date would be the last day of the month (31 he last day of the month (31-12- 2019), which cannot be the first day of the next month (01 2019), which cannot be the first day of the next month (01 2019), which cannot be the first day of the next month (01- 1-2020). The "date" must not be reckoned with respect to 2020). The "date" must not be reckoned with respect to 2020). The "date" must not be reckoned with respect to sun rise but with respect to the time of 24 hours in a day. sun rise but with respect to the time of 24 hours in a day. sun rise but with respect to the time of 24 hours in a day. The moment last minute of the day expires, the d The moment last minute of the day expires, the day ends and ay ends and the next moment which is the first moment of the next day the next moment which is the first moment of the next day the next moment which is the first moment of the next day becomes irrelevant for the purpose of reckoning the period of becomes irrelevant for the purpose of reckoning the period of becomes irrelevant for the purpose of reckoning the period of limitation.

15.

As per the details given in the website of National 15. As per the details given in the website of National 15. As per the details given in the website of National Institute of Standards and Technology of the United Sta Institute of Standards and Technology of the United Sta Institute of Standards and Technology of the United States Government, the Times and Frequency Division, while dealing Government, the Times and Frequency Division, while dealing Government, the Times and Frequency Division, while dealing with FAQ's on times of day suggests the following: with FAQ's on times of day suggests the following: "Is midnight the end of a day or the beginning of a "Is midnight the end of a day or the beginning of a "Is midnight the end of a day or the beginning of a day?

When When When someone someone someone refers refers refers to to to "midnight "midnight "midnight tonight" tonight" tonight" or or or "midnight last night" the reference of "midnight last night" the reference of time is obvious. time is obvious. However, if a date/time is referred to as "at midnight However, if a date/time is referred to as "at midnight However, if a date/time is referred to as "at midnight on Friday, October 20th" the intention could be either on Friday, October 20th" the intention could be either on Friday, October 20th" the intention could be either midnight the beginning of the day or midnight at the midnight the beginning of the day or midnight at the midnight the beginning of the day or midnight at the end of the day. end of the day. To avoid ambiguity, specification of an event as To avoid ambiguity, specification of an event as To avoid ambiguity, specification of an event as occurring on a particular day at 11:59 p.m. or 12:01 n a particular day at 11:59 p.m. or 12:01 n a particular day at 11:59 p.m. or 12:01 a.m. is a good idea, especially legal documents such as a.m. is a good idea, especially legal documents such as a.m. is a good idea, especially legal documents such as contracts and insurance policies. Another option would contracts and insurance policies. Another option would contracts and insurance policies. Another option would be to use 24 be to use 24-hour clock, using the designation of 0000 hour clock, using the designation of 0000 to refer to midnight at the beginning of a given to refer to midnight at the beginning of a given to refer to midnight at the beginning of a given day (or date) and 2400 to designate the end of a given day (or date) and 2400 to designate the end of a given day (or date) and 2400 to designate the end of a given day (or date)."

16.

As per the International Standards Organization, ISO 16. As per the International Standards Organization, ISO 16. As per the International Standards Organization, ISO 8601- 1:2019 midnight may only be referred to as "00:00", 1:2019 midnight may only be referred to as "00:00", 1:2019 midnight may only be referred to as "00:00", corresponding to the beginning of a calendar day. The earlier corresponding to the beginning of a calendar day. The earlier corresponding to the beginning of a calendar day. The earlier use of reference to 24.00 hours to mark the end of the day, reference to 24.00 hours to mark the end of the day, reference to 24.00 hours to mark the end of the day, was dropped.

17.

In India, the midnight or 00.00 hours has been always 17. In India, the midnight or 00.00 hours has been always 17. In India, the midnight or 00.00 hours has been always used to denote the beginning of the next date. A reference used to denote the beginning of the next date. A reference used to denote the beginning of the next date. A reference could be made to our Independence day, wherein the stroke could be made to our Independence day, wherein the stroke could be made to our Independence day, wherein the stroke of midnight at 00.00 hours on 15 t 00.00 hours on 15-8-1947 is considered as the 1947 is considered as the moment of Independence as per the Indian Independence moment of Independence as per the Indian Independence moment of Independence as per the Indian Independence Act, 1947.

18.

Also, it is not out of place to mention here that the new 18. Also, it is not out of place to mention here that the new 18. Also, it is not out of place to mention here that the new year eve of every year, through out the world is celebrated at year eve of every year, through out the world is celebrated at year eve of every year, through out the world is celebrated at 00.00 hours and i 00.00 hours and it is regarded as the beginning of a new day t is regarded as the beginning of a new day and not as an extension of the previous day. and not as an extension of the previous day.

19.

A reference can also be made to various insurance 19. A reference can also be made to various insurance 19. A reference can also be made to various insurance policies, wherein the beginning of the day is reckoned as policies, wherein the beginning of the day is reckoned as policies, wherein the beginning of the day is reckoned as 00.00 hours and the end of the day at 23:59:59 hours. 00.00 hours and the end of the day at 23:59:59 hours. 00.00 hours and the end of the day at 23:59:59 hours.

20.

Even as per the contentions of the appellants, the 20. Even as per the contentions of the appellants, the 20. Even as per the contentions of the appellants, the assessing officer has time upto 23:59:59 hours on 31 assessing officer has time upto 23:59:59 hours on 31 assessing officer has time upto 23:59:59 hours on 31-12- 2019 to pass assessment orders. However, according to 2019 to pass assessment orders. However, according to 2019 to pass assessment orders. However, according to them, the time limit expires at/on 00.00 hours of 1 them, the time limit expires at/on 00.00 hours of 1- -1-2020. The fallacy in such contention The fallacy in such contention is that 00.00 hours of 1 is that 00.00 hours of 1-1-

2020 denotes not only the beginning of the next day of the 2020 denotes not only the beginning of the next day of the 2020 denotes not only the beginning of the next day of the month, but also the fact that it comes after 23:59:59 hours month, but also the fact that it comes after 23:59:59 hours month, but also the fact that it comes after 23:59:59 hours on 31-12-2019 and by such time, the time limit had already 2019 and by such time, the time limit had already 2019 and by such time, the time limit had already expired. By resorting to such fallacious argument, expired. By resorting to such fallacious argument, expired. By resorting to such fallacious argument, the department wants to relate 00:00 hours of 1 department wants to relate 00:00 hours of 1-1-2020 to 31 2020 to 31- 12-2019 and stretch it to 1 2019 and stretch it to 1-1-2020 to extend the period of 2020 to extend the period of limitation for the entire day of 1 limitation for the entire day of 1-1-2020, which cannot be 2020, which cannot be permitted. Even as per section 153, no order can be passed permitted. Even as per section 153, no order can be passed permitted. Even as per section 153, no order can be passed at any time after expiry of twenty one month's implying that expiry of twenty one month's implying that the order has to be passed before 23:59:59 hours on 31 the order has to be passed before 23:59:59 hours on 31 the order has to be passed before 23:59:59 hours on 31-12- 2019. The provision cannot be considered ignoring the words 2019. The provision cannot be considered ignoring the words 2019. The provision cannot be considered ignoring the words "at any time after expiry", in the opinion of this court. "at any time after expiry", in the opinion of this court. "at any time after expiry", in the opinion of this court.

21.

It will be useful to refer to t 21. It will be useful to refer to the judgment of the Apex he judgment of the Apex Court in B.N. Agarwalla v. State of Orissa [1995] 6 SCC 509, Court in B.N. Agarwalla v. State of Orissa [1995] 6 SCC 509, Court in B.N. Agarwalla v. State of Orissa [1995] 6 SCC 509, taking into consideration section 5 of the General Clauses Act taking into consideration section 5 of the General Clauses Act taking into consideration section 5 of the General Clauses Act and the relevant passage of the same reads as under: and the relevant passage of the same reads as under: and the relevant passage of the same reads as under: "6.Sub-section section section (7) (7) (7) of of of section section section 41A 41A 41A provides provides provides for for for automatic transfer to the Arbitration Tribunal of all c transfer to the Arbitration Tribunal of all c transfer to the Arbitration Tribunal of all arbitration proceedings of the kind specified in sub arbitration proceedings of the kind specified in sub arbitration proceedings of the kind specified in sub- section (1) which were "pending before any arbitrator section (1) which were "pending before any arbitrator section (1) which were "pending before any arbitrator on the date of commencement" of the said Act and "in on the date of commencement" of the said Act and "in on the date of commencement" of the said Act and "in which no award had been made by the said date". which no award had been made by the said date". which no award had been made by the said date". Obviously, the expression "by the said date" here viously, the expression "by the said date" here viously, the expression "by the said date" here means by the date of commencement of the Arbitration means by the date of commencement of the Arbitration means by the date of commencement of the Arbitration (Orissa Amendment) Act, 1982. The first expression (Orissa Amendment) Act, 1982. The first expression (Orissa Amendment) Act, 1982. The first expression clearly means an arbitration proceeding pending before clearly means an arbitration proceeding pending before clearly means an arbitration proceeding pending before any arbitrator on the date of commencement of the any arbitrator on the date of commencement of the any arbitrator on the date of commencement of the Act, namely, 26 Act, namely, 26-3-1983. The meaning of the second 1983. The meaning of the second expression should be consistent with that of the first expression should be consistent with that of the first expression should be consistent with that of the first expression since the two could not be used to create a expression since the two could not be used to create a expression since the two could not be used to create a conflict. The purpose of sub conflict. The purpose of sub-section (7) is to divest the section (7) is to divest the arbitrator of authority to make the a arbitrator of authority to make the award in all such ward in all such arbitration proceedings which were pending before the arbitration proceedings which were pending before the arbitration proceedings which were pending before the arbitrator on the date of commencement of the said Act arbitrator on the date of commencement of the said Act arbitrator on the date of commencement of the said Act and to provide for their automatic transfer to the and to provide for their automatic transfer to the and to provide for their automatic transfer to the Arbitration Tribunal. The General Clauses Act, 1897 Arbitration Tribunal. The General Clauses Act, 1897 Arbitration Tribunal. The General Clauses Act, 1897 provides that unless the co provides that unless the contrary is expressed, an Act ntrary is expressed, an Act shall shall shall be be be construed construed construed as as as coming coming coming into into into operation operation operation immediately on the expiration of the day preceding its immediately on the expiration of the day preceding its immediately on the expiration of the day preceding its commencement. There being no contrary indication in commencement. There being no contrary indication in commencement. There being no contrary indication in the Act, it must be held that the said Act came into the Act, it must be held that the said Act came into the Act, it must be held that the said Act came into

force on the midnight on force on the midnight on the expiration of the day the expiration of the day preceding its commencement, preceding its commencement, preceding its commencement, i.e., the i.e., the i.e., the midnight midnight midnight between 25 between 25-3-1983 and 26-3-1983. There can be no 1983. There can be no doubt that if the second expression "in which no award doubt that if the second expression "in which no award doubt that if the second expression "in which no award has been made by the said date " was not also present has been made by the said date " was not also present has been made by the said date " was not also present in sub-section (7), then section (7), then the undoubted result of the the undoubted result of the first expression would be that an arbitration proceeding first expression would be that an arbitration proceeding first expression would be that an arbitration proceeding in which no award had been made up to the midnight in which no award had been made up to the midnight in which no award had been made up to the midnight between 25- between 25-3-1983 and 26-3-1983 would be a pending 1983 would be a pending arbitration arbitration arbitration proceeding proceeding proceeding which which which automatically automatically automatically stood stood stood transferred to the transferred to the Arbitration Tribunal. The question, Arbitration Tribunal. The question, therefore, is whether the further words used in the therefore, is whether the further words used in the therefore, is whether the further words used in the second expression in sub second expression in sub-section (7) must lead to a section (7) must lead to a different conclusion. The construction of the first different conclusion. The construction of the first different conclusion. The construction of the first expression being unambiguous, the second expression expression being unambiguous, the second expression expression being unambiguous, the second expression must be cons must be construed harmoniously unless that is not a trued harmoniously unless that is not a permissible construction of the expression "by the said permissible construction of the expression "by the said permissible construction of the expression "by the said date". 7. It does appear to us that the second expression, 7. It does appear to us that the second expression, 7. It does appear to us that the second expression, namely, "in which no award has been made by the said namely, "in which no award has been made by the said namely, "in which no award has been made by the said date" was further used in sub date" was further used in sub-section (7) ex abundante abundante cautela to clarify the meaning of pending proceedings cautela to clarify the meaning of pending proceedings cautela to clarify the meaning of pending proceedings by indicating that only those arbitration proceedings in by indicating that only those arbitration proceedings in by indicating that only those arbitration proceedings in which the award also had been made "by the said date which the award also had been made "by the said date which the award also had been made "by the said date " were excluded from the operation of sub " were excluded from the operation of sub-section (7) section (7) and that every other arbitra and that every other arbitration proceeding including tion proceeding including those in which the award alone remained to be made those in which the award alone remained to be made those in which the award alone remained to be made "by the said date " stood transferred to the Arbitration "by the said date " stood transferred to the Arbitration "by the said date " stood transferred to the Arbitration Tribunal. In other words, if the arbitration proceedings Tribunal. In other words, if the arbitration proceedings Tribunal. In other words, if the arbitration proceedings had been closed but the arbitrator had not made the had been closed but the arbitrator had not made the had been closed but the arbitrator had not made the award till th award till the midnight between 25-3-1983 and 26 1983 and 26-3- 1983 when the Act came into force, it was a pending 1983 when the Act came into force, it was a pending 1983 when the Act came into force, it was a pending arbitration proceeding governed by sub arbitration proceeding governed by sub-section (7). section (7). Acceptance of the appellant's contention would amount Acceptance of the appellant's contention would amount Acceptance of the appellant's contention would amount to holding that even though the Act had come into to holding that even though the Act had come into to holding that even though the Act had come into force on the midnight between 25 he midnight between 25-3-1983 and 26 1983 and 26-3- 1983, an award made thereafter on 26 1983, an award made thereafter on 26-3-1983 was not 1983 was not a pending arbitration proceeding on the date of a pending arbitration proceeding on the date of a pending arbitration proceeding on the date of commencement of the Act. Unless meaning of the commencement of the Act. Unless meaning of the commencement of the Act. Unless meaning of the expression "by the said date " used in sub expression "by the said date " used in sub-section (7) section (7) be only that su be only that suggested by learned counsel for the ggested by learned counsel for the appellant, the construction which would harmonise with appellant, the construction which would harmonise with appellant, the construction which would harmonise with

the meaning of the earlier expression, must be given to the meaning of the earlier expression, must be given to the meaning of the earlier expression, must be given to the provision. the provision. 8. We may now consider the meaning of the word 'by' 8. We may now consider the meaning of the word 'by' 8. We may now consider the meaning of the word 'by' for ascertaining the meaning of the express for ascertaining the meaning of the expression "by the ion "by the said date ". Meaning of the word 'by' in some of the said date ". Meaning of the word 'by' in some of the said date ". Meaning of the word 'by' in some of the dictionaries is: dictionaries is: Black's Law Dictionary (Sixth Edn.) Black's Law Dictionary (Sixth Edn.) "Before a certain time; ... not later than a certain time; "Before a certain time; ... not later than a certain time; "Before a certain time; ... not later than a certain time; on or before a certain time;……" on or before a certain time;……" The New Shorter Oxford English Dictionary The New Shorter Oxford English Dictionary "... On or before, not later than. ..." On or before, not later than. ..." 9. No doubt the word 'by' means "before a certain time 9. No doubt the word 'by' means "before a certain time 9. No doubt the word 'by' means "before a certain time " as well as "on or before a certain time". The question " as well as "on or before a certain time". The question " as well as "on or before a certain time". The question is: whether, the word 'by' in the expression "by the is: whether, the word 'by' in the expression "by the is: whether, the word 'by' in the expression "by the said date " would mean in other words 'before' or 'on' said date " would mean in other words 'before' or 'on' said date " would mean in other words 'before' or 'on' 26-3-1983 in the present context? We have already 1983 in the present context? We have already 1983 in the present context? We have already indicated the meaning of the first expression "pending indicated the meaning of the first expression "pending indicated the meaning of the first expression "pending before any arbitrator on the date of commencement" to before any arbitrator on the date of commencement" to before any arbitrator on the date of commencement" to mean clearly and unambiguously pending up to the mean clearly and unambiguously pending up to the mean clearly and unambiguously pending up to the midnight between 25 midnight between 25-3-1983 and 26-3-1983, i.e., 1983, i.e., before commencement of the date 26 efore commencement of the date 26-3-1983 or at the 1983 or at the time of expiry of the preceding day i.e. 25 time of expiry of the preceding day i.e. 25-3-1983. The 1983. The other expression must, therefore, be construed in this other expression must, therefore, be construed in this other expression must, therefore, be construed in this context and since the word 'by' means 'before' also, in context and since the word 'by' means 'before' also, in context and since the word 'by' means 'before' also, in this context it must be held to mean ' this context it must be held to mean 'before' and not before' and not 'on' the date of commencement of the Act. So 'on' the date of commencement of the Act. So 'on' the date of commencement of the Act. So construed, the second expression would read as "in construed, the second expression would read as "in construed, the second expression would read as "in which no award has been made before the said date" which no award has been made before the said date" which no award has been made before the said date" i.e. in which no award has been made before the date i.e. in which no award has been made before the date i.e. in which no award has been made before the date of commencement of the Act, namely, 26 of commencement of the Act, namely, 26-3-1983. This 1983. This would be the harmonious construction of the two would be the harmonious construction of the two would be the harmonious construction of the two expressions in the provision. expressions in the provision. 10. Obviously, an award made on 26 10. Obviously, an award made on 26-3-1983 cannot be 1983 cannot be said to be an award made before 26 said to be an award made before 26-3-1983 and, 1983 and, therefore, the award in the present case having been therefore, the award in the present case having been therefore, the award in the present case having been made on 26 made on 26-3-1983 and not before 26-3-1983, the 1983, the date of commencement of the Act, the arbitrator had date of commencement of the Act, the arbitrator had date of commencement of the Act, the arbitrator had no jurisdiction to make the award as it was a pending no jurisdiction to make the award as it was a pending no jurisdiction to make the award as it was a pending arbitration arbitration arbitration proceeding proceeding proceeding which which which automatically automatically automatically stood stood stood transferred to the Arbitration Tribunal." transferred to the Arbitration Tribunal."

22.

From section 153, th 22. From section 153, the regular time for passing the e regular time for passing the assessment order ends on 31 assessment order ends on 31-12-2018 and with extension on 2018 and with extension on the matter being referred to TPO, the time limit to pass the matter being referred to TPO, the time limit to pass the matter being referred to TPO, the time limit to pass assessment order would lapse on 31 assessment order would lapse on 31-12-2019. What is not to 2019. What is not to be forgotten, while interpreting a taxing statute, be forgotten, while interpreting a taxing statute, be forgotten, while interpreting a taxing statute, is the explicit and clear language used by the parliament while explicit and clear language used by the parliament while explicit and clear language used by the parliament while enacting the law. If the language employed in any statute is enacting the law. If the language employed in any statute is enacting the law. If the language employed in any statute is clear and unambiguous from its plain and natural meaning, clear and unambiguous from its plain and natural meaning, clear and unambiguous from its plain and natural meaning, external aid for interpretation are unnecessary. In the external aid for interpretation are unnecessary. In the external aid for interpretation are unnecessary. In the present case, we present case, we are called upon to adjudicate the period of are called upon to adjudicate the period of limitation applicable to TPO under section 92CA(3A) and limitation applicable to TPO under section 92CA(3A) and limitation applicable to TPO under section 92CA(3A) and incidentally under section 153. incidentally under section 153.

23.

On the applicability of the General Clauses Act, it is 23. On the applicability of the General Clauses Act, it is 23. On the applicability of the General Clauses Act, it is relevant to point out the ratio laid down in the Constitutional relevant to point out the ratio laid down in the Constitutional relevant to point out the ratio laid down in the Constitutional Bench Bench Bench Judgment Judgment Judgment of of of the the the Hon'ble Hon'ble Hon'ble Supreme Supreme Supreme Court Court Court in in in Commissioner of Customs (Import) v. Dilip Kumar & Co. Commissioner of Customs (Import) v. Dilip Kumar & Co. Commissioner of Customs (Import) v. Dilip Kumar & Co. [2018] 95 taxmann.com 327/69 GST 239, which reads as [2018] 95 taxmann.com 327/69 GST 239, which reads as [2018] 95 taxmann.com 327/69 GST 239, which reads as under:

"17. In doing so, the principles of interpretation have "17. In doing so, the principles of interpretation have "17. In doing so, the principles of interpretation have been evolved in common law. It has als been evolved in common law. It has also been the o been the practice for the appropriate legislative body to enact practice for the appropriate legislative body to enact practice for the appropriate legislative body to enact the Interpretation Acts or the General Clauses Act. In the Interpretation Acts or the General Clauses Act. In the Interpretation Acts or the General Clauses Act. In all the Acts and Regulations, made either by Parliament all the Acts and Regulations, made either by Parliament all the Acts and Regulations, made either by Parliament or Legislature, the words and phrases as defined in the or Legislature, the words and phrases as defined in the or Legislature, the words and phrases as defined in the General Clauses Act and General Clauses Act and the principles of interpretation the principles of interpretation laid down in the General Clauses Act are to be laid down in the General Clauses Act are to be laid down in the General Clauses Act are to be necessarily kept in view. If while interpreting a necessarily kept in view. If while interpreting a necessarily kept in view. If while interpreting a statutory law, any doubt arises as to the meaning to be statutory law, any doubt arises as to the meaning to be statutory law, any doubt arises as to the meaning to be assigned to a word or a phrase or a clause used in an assigned to a word or a phrase or a clause used in an assigned to a word or a phrase or a clause used in an enactment and s enactment and such word, phrase or clause is not uch word, phrase or clause is not specifically specifically specifically defined, defined, defined, it it it is is is legitimate legitimate legitimate and and and indeed indeed indeed mandatory to fall back on the General Clauses Act. mandatory to fall back on the General Clauses Act. mandatory to fall back on the General Clauses Act. Notwithstanding this, we should remember that when Notwithstanding this, we should remember that when Notwithstanding this, we should remember that when there is repugnancy or conflict as to the subject or there is repugnancy or conflict as to the subject or there is repugnancy or conflict as to the subject or context between t context between the General Clauses Act and a he General Clauses Act and a statutory provision which falls for interpretation, the statutory provision which falls for interpretation, the statutory provision which falls for interpretation, the Court must necessarily refer to the provisions of the Court must necessarily refer to the provisions of the Court must necessarily refer to the provisions of the statute."

24.

The finding so rendered by the Constitutional Bench of 24. The finding so rendered by the Constitutional Bench of 24. The finding so rendered by the Constitutional Bench of the Hon'ble Supreme Court can be related to Arti the Hon'ble Supreme Court can be related to Article 367 (1) cle 367 (1) of the Constitution of India, which reads as follows: of the Constitution of India, which reads as follows:

"367. Interpretation "367. Interpretation––(1) Unless the context otherwise (1) Unless the context otherwise requires, the General Clauses Act, 1897 , shall, subject requires, the General Clauses Act, 1897 , shall, subject requires, the General Clauses Act, 1897 , shall, subject to any adaptations and modifications that may be made to any adaptations and modifications that may be made to any adaptations and modifications that may be made therein under Article 3 therein under Article 372, apply for the interpretation 72, apply for the interpretation of this Constitution as it applies for the interpretation of of this Constitution as it applies for the interpretation of of this Constitution as it applies for the interpretation of an Act of the Legislature of the Dominion of India". an Act of the Legislature of the Dominion of India". an Act of the Legislature of the Dominion of India".

25.

The above Article commences with the words, "unless the 25. The above Article commences with the words, "unless the 25. The above Article commences with the words, "unless the context otherwise requires". Therefore, the inte context otherwise requires". Therefore, the interpretation rpretation sought to be projected by the department cannot be sought to be projected by the department cannot be sought to be projected by the department cannot be accepted as the General Clauses Act cannot override any accepted as the General Clauses Act cannot override any accepted as the General Clauses Act cannot override any interpretation propounded by the parliament/Legislature in interpretation propounded by the parliament/Legislature in interpretation propounded by the parliament/Legislature in the clear, distinct and express language with an intention to the clear, distinct and express language with an intention to the clear, distinct and express language with an intention to convey a certaint convey a certainty as to how time is to be calculated. The y as to how time is to be calculated. The ratio laid down by the Constitutional Bench of the Apex Court ratio laid down by the Constitutional Bench of the Apex Court ratio laid down by the Constitutional Bench of the Apex Court is squarely applicable to this case. is squarely applicable to this case.

26.

Further, the general interpretation by resorting to the 26. Further, the general interpretation by resorting to the 26. Further, the general interpretation by resorting to the meaning conveyed under the General Clauses Act cannot meaning conveyed under the General Clauses Act cannot meaning conveyed under the General Clauses Act cannot be adopted while interpreting 92CA (3A), because, the context adopted while interpreting 92CA (3A), because, the context adopted while interpreting 92CA (3A), because, the context and the language employed therein are completely different and the language employed therein are completely different and the language employed therein are completely different and it is pertinent to note that the words "from" and "to" and it is pertinent to note that the words "from" and "to" and it is pertinent to note that the words "from" and "to" have not been used. Even the employment of the General have not been used. Even the employment of the General have not been used. Even the employment of the General Clauses Act will not Clauses Act will not aid the Revenue, the reason of which will aid the Revenue, the reason of which will be disclosed a little later in this judgment. But, right now, it be disclosed a little later in this judgment. But, right now, it be disclosed a little later in this judgment. But, right now, it is relevant to consider the scope of the word "to". is relevant to consider the scope of the word "to".

27.

The word "to" is used as a preposition or as an adverb. In 27. The word "to" is used as a preposition or as an adverb. In 27. The word "to" is used as a preposition or as an adverb. In popular sense, it is used to expr popular sense, it is used to express the direction in which a ess the direction in which a person, thing, or time travels. The flow of direction is to be person, thing, or time travels. The flow of direction is to be person, thing, or time travels. The flow of direction is to be gauged from the preceding word or words used, like "prior gauged from the preceding word or words used, like "prior gauged from the preceding word or words used, like "prior to" or "upto". Keeping the same in mind, if we look at the to" or "upto". Keeping the same in mind, if we look at the to" or "upto". Keeping the same in mind, if we look at the wording of section 92CA (3A), we cannot accept wording of section 92CA (3A), we cannot accept wording of section 92CA (3A), we cannot accept the contention of the Revenue that the time to be reckoned is contention of the Revenue that the time to be reckoned is contention of the Revenue that the time to be reckoned is from 31-12-2019 and not 30 2019 and not 30-12-2019 as has been rightly 2019 as has been rightly done by the learned Judge. done by the learned Judge.

28.

The word "date" in section 92CA(3A) would indicate 31 28. The word "date" in section 92CA(3A) would indicate 31 28. The word "date" in section 92CA(3A) would indicate 31- 12-2019. But the preceding words "prior to" would ind 2019. But the preceding words "prior to" would ind 2019. But the preceding words "prior to" would indicate that for the purpose of calculating the 60 days, 31 that for the purpose of calculating the 60 days, 31- -12-2019 must be excluded. The usage of the word "prior" is not must be excluded. The usage of the word "prior" is not must be excluded. The usage of the word "prior" is not without significance. It is not open to this court to just without significance. It is not open to this court to just without significance. It is not open to this court to just consider the word "to" by ignoring "prior". The word "prior" in consider the word "to" by ignoring "prior". The word "prior" in consider the word "to" by ignoring "prior". The word "prior" in the present context, not only denotes the flow of direction, context, not only denotes the flow of direction, context, not only denotes the flow of direction, but also actual date from which the period of 60 days is to be but also actual date from which the period of 60 days is to be but also actual date from which the period of 60 days is to be calculated. It is settled law that while interpreting a statute, calculated. It is settled law that while interpreting a statute, calculated. It is settled law that while interpreting a statute, it is not for the courts to treat any word(s) as redundant or it is not for the courts to treat any word(s) as redundant or it is not for the courts to treat any word(s) as redundant or superfluous and i superfluous and ignore the same. In this connection, it is gnore the same. In this connection, it is pertinent to note the judgment of the Apex Court in Grasim pertinent to note the judgment of the Apex Court in Grasim pertinent to note the judgment of the Apex Court in Grasim Industries Ltd. v. Collector of Customs 2002 taxmann.com Industries Ltd. v. Collector of Customs 2002 taxmann.com Industries Ltd. v. Collector of Customs 2002 taxmann.com 1803, wherein, it was held as follows : 1803, wherein, it was held as follows :

"10. No words or expressions used in any statute can "10. No words or expressions used in any statute can "10. No words or expressions used in any statute can be said to be redundant or superfluous. In matters of be said to be redundant or superfluous. In matters of be said to be redundant or superfluous. In matters of interpretation one should not concentrate too much on interpretation one should not concentrate too much on interpretation one should not concentrate too much on one word and pay too little attention to other words. No one word and pay too little attention to other words. No one word and pay too little attention to other words. No provision in the statute and no word i provision in the statute and no word in any section can n any section can be construed in isolation. Every provision and every be construed in isolation. Every provision and every be construed in isolation. Every provision and every word must be looked at generally and in the context in word must be looked at generally and in the context in word must be looked at generally and in the context in which it is used. It is said that every statute is an edict which it is used. It is said that every statute is an edict which it is used. It is said that every statute is an edict of of of the the the legislature. legislature. legislature. The The The elementary elementary elementary principle principle principle of of of interpreting any word interpreting any word while considering a statute is to while considering a statute is to gather the mens or sententia legis of the legislature. gather the mens or sententia legis of the legislature. gather the mens or sententia legis of the legislature. Where the words are clear and there is no obscurity, Where the words are clear and there is no obscurity, Where the words are clear and there is no obscurity, and there is no ambiguity and the intention of the and there is no ambiguity and the intention of the and there is no ambiguity and the intention of the legislature is clearly conveyed, there is no scope for the legislature is clearly conveyed, there is no scope for the legislature is clearly conveyed, there is no scope for the court to take upon itself the task of amending or t to take upon itself the task of amending or t to take upon itself the task of amending or alternating (sic altering) the statutory provisions. alternating (sic altering) the statutory provisions. alternating (sic altering) the statutory provisions. Wherever the language is clear the intention of the Wherever the language is clear the intention of the Wherever the language is clear the intention of the legislature is to be gathered from the language used. legislature is to be gathered from the language used. legislature is to be gathered from the language used. While doing so, what has been said in the statute a While doing so, what has been said in the statute a While doing so, what has been said in the statute as also what has not been said has to be noted. The also what has not been said has to be noted. The also what has not been said has to be noted. The construction which requires for its support addition or construction which requires for its support addition or construction which requires for its support addition or substitution of words or which results in rejection of substitution of words or which results in rejection of substitution of words or which results in rejection of words has to be avoided. As stated by the Privy Council words has to be avoided. As stated by the Privy Council words has to be avoided. As stated by the Privy Council in Crawford v. Spooner [(1846) 6 Moore in Crawford v. Spooner [(1846) 6 Moore PC 1 : 4 MIA PC 1 : 4 MIA 179] "we cannot aid the legislature's defective phrasing 179] "we cannot aid the legislature's defective phrasing 179] "we cannot aid the legislature's defective phrasing of an Act, we cannot add or mend and, by construction of an Act, we cannot add or mend and, by construction of an Act, we cannot add or mend and, by construction make up deficiencies which are left there". In case of make up deficiencies which are left there". In case of make up deficiencies which are left there". In case of

an ordinary word there should be no attempt to an ordinary word there should be no attempt to an ordinary word there should be no attempt to substitute substitute or or paraphrase paraphrase of of g general eneral application. application. Attention should be confined to what is necessary for Attention should be confined to what is necessary for Attention should be confined to what is necessary for deciding the particular case. This principle is too well deciding the particular case. This principle is too well deciding the particular case. This principle is too well settled and reference to a few decisions of this Court settled and reference to a few decisions of this Court settled and reference to a few decisions of this Court would suffice. (See : Gwalior Rayons Silk Mfg. (Wvg.) would suffice. (See : Gwalior Rayons Silk Mfg. (Wvg.) would suffice. (See : Gwalior Rayons Silk Mfg. (Wvg.) Co. Ltd. v. Cust Co. Ltd. v. Custodian of Vested Forests [1990 Supp odian of Vested Forests [1990 Supp SCC 785 : AIR 1990 SC 1747] , Union of India v. Deoki SCC 785 : AIR 1990 SC 1747] , Union of India v. Deoki SCC 785 : AIR 1990 SC 1747] , Union of India v. Deoki Nandan Aggarwal [1992 Supp (1) SCC 323 : 1992 SCC Nandan Aggarwal [1992 Supp (1) SCC 323 : 1992 SCC Nandan Aggarwal [1992 Supp (1) SCC 323 : 1992 SCC (L&S) 248 : (1992) 19 ATC 219 : AIR 1992 SC 96] , (L&S) 248 : (1992) 19 ATC 219 : AIR 1992 SC 96] , (L&S) 248 : (1992) 19 ATC 219 : AIR 1992 SC 96] , Institute of Chartered Accountants of India v. Price Institute of Chartered Accountants of India v. Price Institute of Chartered Accountants of India v. Price Waterhouse [(1 Waterhouse [(1997) 6 SCC 312] and Harbhajan Singh 997) 6 SCC 312] and Harbhajan Singh v. Press Council of India [(2002) 3 SCC 722 : JT (2002) v. Press Council of India [(2002) 3 SCC 722 : JT (2002) v. Press Council of India [(2002) 3 SCC 722 : JT (2002) 3 SC 21] .)" 3 SC 21] .)"

29.

The language employed is simple. 31 29. The language employed is simple. 31-12-2019 is the last 2019 is the last date for the assessing officer to pass his order under section date for the assessing officer to pass his order under section date for the assessing officer to pass his order under section 153. The TPO has to pass or 153. The TPO has to pass order before 60 days prior to the der before 60 days prior to the last date. The 60 days is to be calculated excluding the last last date. The 60 days is to be calculated excluding the last last date. The 60 days is to be calculated excluding the last date because of the use of the words "prior to" and the TPO date because of the use of the words "prior to" and the TPO date because of the use of the words "prior to" and the TPO has to pass order before the 60th day. In the present case, has to pass order before the 60th day. In the present case, has to pass order before the 60th day. In the present case, the word "before" used before "60 days" wo the word "before" used before "60 days" would indicate that uld indicate that an order has to be passed before 1 an order has to be passed before 1-11-2019 i.e on or before 2019 i.e on or before 31-10-2019 as rightly held by the Learned Judge. 2019 as rightly held by the Learned Judge.

30.

30. 30. Even Even Even considering considering considering for for for the the the purpose purpose purpose of of of alternate alternate alternate interpretation, the scope of section 9 of the General Clauses interpretation, the scope of section 9 of the General Clauses interpretation, the scope of section 9 of the General Clauses Act, it is to be noted that an inverted calculation of the period noted that an inverted calculation of the period noted that an inverted calculation of the period of limitation takes place here. If the last date is taken to be of limitation takes place here. If the last date is taken to be of limitation takes place here. If the last date is taken to be the first date from which the period of 60 days is to be the first date from which the period of 60 days is to be the first date from which the period of 60 days is to be calculated, reading down the provision with the use of the calculated, reading down the provision with the use of the calculated, reading down the provision with the use of the word "from", which denotes word "from", which denotes the starting point or period of the starting point or period of direction in general parlance, would mean that 60 days "from direction in general parlance, would mean that 60 days "from direction in general parlance, would mean that 60 days "from the last date". Even going by section 9 of the General Clauses the last date". Even going by section 9 of the General Clauses the last date". Even going by section 9 of the General Clauses Act, when the word "from" is used, then, that date is to be Act, when the word "from" is used, then, that date is to be Act, when the word "from" is used, then, that date is to be excluded, implying here that 31 excluded, implying here that 31-12-2019 must be excluded. must be excluded. After excluding 31 After excluding 31-12-2019, if the period of 60 days is 2019, if the period of 60 days is calculated, the 60th day would fall on 1 calculated, the 60th day would fall on 1-11-2019 and the TPO 2019 and the TPO must have passed the order on or before 31 must have passed the order on or before 31-10- -2019 as orders are to be passed before the 60th day. Therefore, orders are to be passed before the 60th day. Therefore, orders are to be passed before the 60th day. Therefore, either way the contention of the Revenue is a fallacy and has the contention of the Revenue is a fallacy and has the contention of the Revenue is a fallacy and has no legs to stand.

Mandatory or Directory Mandatory or Directory 31. The next contention that has been raised by the learned 31. The next contention that has been raised by the learned 31. The next contention that has been raised by the learned senior standing counsel for the appellants is that the usage of senior standing counsel for the appellants is that the usage of senior standing counsel for the appellants is that the usage of the word "may" in section 92CA (3A) in the word "may" in section 92CA (3A) indicates that the time dicates that the time fixed is only directory, a guideline, not mandatory and is for fixed is only directory, a guideline, not mandatory and is for fixed is only directory, a guideline, not mandatory and is for the sake of internal proceedings. the sake of internal proceedings.

32.

Let us now examine the relevant procedures relating to 32. Let us now examine the relevant procedures relating to 32. Let us now examine the relevant procedures relating to Transfer Pricing. After an international transaction is noticed Transfer Pricing. After an international transaction is noticed Transfer Pricing. After an international transaction is noticed subject to satisfaction of section 92B, a reference is made to tisfaction of section 92B, a reference is made to tisfaction of section 92B, a reference is made to the TPO under sub the TPO under sub-section (1) of section 92CA of the Act. section (1) of section 92CA of the Act. The TPO after considering the documents submitted by the The TPO after considering the documents submitted by the The TPO after considering the documents submitted by the assessee is to pass an order under section 92CA (3) of the assessee is to pass an order under section 92CA (3) of the assessee is to pass an order under section 92CA (3) of the Act. As per section 92CA(3A), th Act. As per section 92CA(3A), the order has to be passed e order has to be passed before the expiry of 60 days prior to the date on which the before the expiry of 60 days prior to the date on which the before the expiry of 60 days prior to the date on which the period of limitation under section 153 expires. As per period of limitation under section 153 expires. As per period of limitation under section 153 expires. As per 92CA(4), the assessing officer has to pass an order in 92CA(4), the assessing officer has to pass an order in 92CA(4), the assessing officer has to pass an order in conformity with the order of the TPO. After receipt of the conformity with the order of the TPO. After receipt of the conformity with the order of the TPO. After receipt of the order from the TPO determining ALP, the assessing officer is der from the TPO determining ALP, the assessing officer is der from the TPO determining ALP, the assessing officer is to forward a draft assessment order to the assessee, who has to forward a draft assessment order to the assessee, who has to forward a draft assessment order to the assessee, who has an option either to file his acceptance of the variation of the an option either to file his acceptance of the variation of the an option either to file his acceptance of the variation of the assessment or file his objection to any such variation with the assessment or file his objection to any such variation with the assessment or file his objection to any such variation with the Dispute Resolution Panel and also the Assessing Officer. Sub Resolution Panel and also the Assessing Officer. Sub Resolution Panel and also the Assessing Officer. Sub- section (5) of section 144C of the Act provides that if any section (5) of section 144C of the Act provides that if any section (5) of section 144C of the Act provides that if any objections are raised by the assessee before the Dispute objections are raised by the assessee before the Dispute objections are raised by the assessee before the Dispute Resolution Panel, the Panel is empowered to issue such Resolution Panel, the Panel is empowered to issue such Resolution Panel, the Panel is empowered to issue such direction as it thinks fit for direction as it thinks fit for the guidance of the Assessing the guidance of the Assessing Officer after considering various details provided in Clauses Officer after considering various details provided in Clauses Officer after considering various details provided in Clauses (A) to (G) thereof. Sub (A) to (G) thereof. Sub-section (13) of section 144C of the section (13) of section 144C of the Act provides that upon receipt of directions issued under sub Act provides that upon receipt of directions issued under sub Act provides that upon receipt of directions issued under sub- section (5) of section 144C of the Act, th section (5) of section 144C of the Act, the Assessing Officer e Assessing Officer shall in conformity with the directions complete the shall in conformity with the directions complete the shall in conformity with the directions complete the assessment proceedings. It goes without saying that if no assessment proceedings. It goes without saying that if no assessment proceedings. It goes without saying that if no objections are filed by the Assessee either before the DRP or objections are filed by the Assessee either before the DRP or objections are filed by the Assessee either before the DRP or the assessing officer to the determination by the TPO, section the assessing officer to the determination by the TPO, section the assessing officer to the determination by the TPO, section 92CA(4) would come into operation. Therefore, it is very 92CA(4) would come into operation. Therefore, it is very 92CA(4) would come into operation. Therefore, it is very clear that once a reference is made, it would have an impact clear that once a reference is made, it would have an impact clear that once a reference is made, it would have an impact on the assessment unless a decision on merits is taken by on the assessment unless a decision on merits is taken by on the assessment unless a decision on merits is taken by DRP rejecting or varying the determination by the TPO. DRP rejecting or varying the determination by the TPO. DRP rejecting or varying the determination by the TPO.

33.

It would only be apr 33. It would only be apropos to note that as per proviso to opos to note that as per proviso to section 92CA (3A), if the time limit for the TPO to pass an section 92CA (3A), if the time limit for the TPO to pass an section 92CA (3A), if the time limit for the TPO to pass an order is less than 60 days, then the remaining period shall be order is less than 60 days, then the remaining period shall be order is less than 60 days, then the remaining period shall be extended to 60 days. This implies that not only is the time extended to 60 days. This implies that not only is the time extended to 60 days. This implies that not only is the time frame mandatory, but also that the TP frame mandatory, but also that the TPO has to pass an order O has to pass an order within 60 days.

34.

Further, the extension in the proviso referred above, also 34. Further, the extension in the proviso referred above, also 34. Further, the extension in the proviso referred above, also automatically extends the period of assessment to 60 days as automatically extends the period of assessment to 60 days as automatically extends the period of assessment to 60 days as per the second proviso to section 153. per the second proviso to section 153.

35.

Also, but for the reference to the TPO, the time 35. Also, but for the reference to the TPO, the time limit for completing the assessment would only be 21 months from completing the assessment would only be 21 months from completing the assessment would only be 21 months from the end of the assessment year. It is only if a reference is the end of the assessment year. It is only if a reference is the end of the assessment year. It is only if a reference is pending, the department gets another 12 months. Once pending, the department gets another 12 months. Once pending, the department gets another 12 months. Once reference is made and after availing the benefit of the reference is made and after availing the benefit of the reference is made and after availing the benefit of the extended period to p extended period to pass orders, the department cannot claim ass orders, the department cannot claim that the time limits are not mandatory. Hence, the contention that the time limits are not mandatory. Hence, the contention that the time limits are not mandatory. Hence, the contention raised in this regard is rejected. raised in this regard is rejected.

36.

As rightly pointed out by Mr. Ajay Vohra, learned senior 36. As rightly pointed out by Mr. Ajay Vohra, learned senior 36. As rightly pointed out by Mr. Ajay Vohra, learned senior counsel counsel counsel for for for the the the respondents respondents respondents in in in WA. WA. WA. Nos.1148 Nos.1148 Nos.1148 and and and 1149/2021, the word "may" has to be sometimes read as , the word "may" has to be sometimes read as , the word "may" has to be sometimes read as "shall" and vice versa depending upon the context in which it "shall" and vice versa depending upon the context in which it "shall" and vice versa depending upon the context in which it is used, the consequences of the performance or failure on is used, the consequences of the performance or failure on is used, the consequences of the performance or failure on the overall scheme and object of the provisions would have the overall scheme and object of the provisions would have the overall scheme and object of the provisions would have to be considered while determin to be considered while determining whether it is mandatory ing whether it is mandatory or directory.

37.

At this juncture, it is noteworthy to mention the 37. At this juncture, it is noteworthy to mention the 37. At this juncture, it is noteworthy to mention the commentary of Justice G.P.Singh on the interpretation of commentary of Justice G.P.Singh on the interpretation of commentary of Justice G.P.Singh on the interpretation of statutes, Principles of Statutory Interpretation (1st Edn., statutes, Principles of Statutory Interpretation (1st Edn., statutes, Principles of Statutory Interpretation (1st Edn., Lexis Nexis 2015), which is quoted below for ready 2015), which is quoted below for ready 2015), which is quoted below for ready reference: 'The intention of the legislature thus assimilates two 'The intention of the legislature thus assimilates two 'The intention of the legislature thus assimilates two aspects: In one aspect it carries the concept of aspects: In one aspect it carries the concept of aspects: In one aspect it carries the concept of "meaning" i.e. what the words mean and in another "meaning" i.e. what the words mean and in another "meaning" i.e. what the words mean and in another aspect, it conveys the concept of "purpose and obje aspect, it conveys the concept of "purpose and obje aspect, it conveys the concept of "purpose and object" or the "reason and spirit" pervading through the or the "reason and spirit" pervading through the or the "reason and spirit" pervading through the statute. statute. statute. The The The process process process of of of construction, construction, construction, therefore, therefore, therefore, combines both literal and purposive approaches. In combines both literal and purposive approaches. In combines both literal and purposive approaches. In other words the legislative intention i.e. the true or other words the legislative intention i.e. the true or other words the legislative intention i.e. the true or

legal legal legal meaning meaning meaning of of of an an an enactment enactment enactment is is is derived derived derived by by by considering the meaning of the words used in the idering the meaning of the words used in the idering the meaning of the words used in the enactment in the light of any discernible purpose or enactment in the light of any discernible purpose or enactment in the light of any discernible purpose or object which comprehends the mischief and its remedy object which comprehends the mischief and its remedy object which comprehends the mischief and its remedy to which the enactment is directed. This formulation to which the enactment is directed. This formulation to which the enactment is directed. This formulation later received the approval of the Supreme Court and later received the approval of the Supreme Court and later received the approval of the Supreme Court and was called the "cardinal principle of construction".' was called the "cardinal principle of construction".' was called the "cardinal principle of construction".'

38.

In case of assessments involving transfer pricing, fixing 38. In case of assessments involving transfer pricing, fixing 38. In case of assessments involving transfer pricing, fixing of time limits at various stages sets forth that the object of of time limits at various stages sets forth that the object of of time limits at various stages sets forth that the object of the provisions is to facilitate faster assessment involving such the provisions is to facilitate faster assessment involving such the provisions is to facilitate faster assessment involving such determination. In the present case, as rightly held by the ion. In the present case, as rightly held by the ion. In the present case, as rightly held by the learned Judge in paragraphs 22 to 29 of the order dated 7 learned Judge in paragraphs 22 to 29 of the order dated 7 learned Judge in paragraphs 22 to 29 of the order dated 7-9- 2020, the order of the TPO or the failure to pass an order 2020, the order of the TPO or the failure to pass an order 2020, the order of the TPO or the failure to pass an order before 60 days will have an impact in the order to be passed before 60 days will have an impact in the order to be passed before 60 days will have an impact in the order to be passed by the Assessing Officer, f by the Assessing Officer, for which an outer time limit has or which an outer time limit has been prescribed under sections 144C and 153 and is hence been prescribed under sections 144C and 153 and is hence been prescribed under sections 144C and 153 and is hence mandatory. What is also not to be forgotten, considering the mandatory. What is also not to be forgotten, considering the mandatory. What is also not to be forgotten, considering the scheme of the Act, the inter scheme of the Act, the inter-relatability and inter-dependency dependency of the provisions to conclude the assessme of the provisions to conclude the assessment, is the nt, is the consequence or the effect that follows, if an order is not consequence or the effect that follows, if an order is not consequence or the effect that follows, if an order is not passed in time. When an order is passed in time, the passed in time. When an order is passed in time, the passed in time. When an order is passed in time, the procedures under 144C and 92CA(4) are to be followed. procedures under 144C and 92CA(4) are to be followed. procedures under 144C and 92CA(4) are to be followed. When the determination is not in time, it cannot be relied When the determination is not in time, it cannot be relied When the determination is not in time, it cannot be relied upon upon by by the the assessin assessing g officer officer while while concluding concluding the the assessment proceedings. assessment proceedings.

39.

Upon consideration of the judgments and the scheme of consideration of the judgments and the scheme of consideration of the judgments and the scheme of the Act, we are of the opinion that the word "may" used the Act, we are of the opinion that the word "may" used the Act, we are of the opinion that the word "may" used therein has to be construed as "shall" and the time period therein has to be construed as "shall" and the time period therein has to be construed as "shall" and the time period fixed therein has to be scrupulously followed. The word fixed therein has to be scrupulously followed. The word fixed therein has to be scrupulously followed. The word "may" is used there to imply that a "may" is used there to imply that an order can be passed any n order can be passed any day before 60 days and it is not that the order must be made day before 60 days and it is not that the order must be made day before 60 days and it is not that the order must be made on the day before the 60th day. The impact of the proviso to on the day before the 60th day. The impact of the proviso to on the day before the 60th day. The impact of the proviso to the sub-section clarifies the mandatory nature of the time section clarifies the mandatory nature of the time section clarifies the mandatory nature of the time schedule. The word "may" cannot be interpreted to schedule. The word "may" cannot be interpreted to say that the legislature never wanted the authority to pass an order the legislature never wanted the authority to pass an order the legislature never wanted the authority to pass an order within 60 days and it gave a discretion. Therefore, the within 60 days and it gave a discretion. Therefore, the within 60 days and it gave a discretion. Therefore, the learned Judge rightly held the orders impugned in the writ learned Judge rightly held the orders impugned in the writ learned Judge rightly held the orders impugned in the writ petitions as barred by limitation, as the Board, in the Central petitions as barred by limitation, as the Board, in the Central petitions as barred by limitation, as the Board, in the Central Action Plan, has specified 31 Plan, has specified 31-10-2019 as the date on which 2019 as the date on which

orders are to be passed by the TPO, reiterating the time limit orders are to be passed by the TPO, reiterating the time limit orders are to be passed by the TPO, reiterating the time limit to be mandatory.

V. Conclusion. 40. Ergo, we find no reasons to interfere with the order of the 40. Ergo, we find no reasons to interfere with the order of the 40. Ergo, we find no reasons to interfere with the order of the Learned Judge, which is impugned herein and Learned Judge, which is impugned herein and accordingly, accordingly, dismiss these intra dismiss these intra-court appeals, but without costs. court appeals, but without costs. Consequently, connected miscellaneous petitions are closed Consequently, connected miscellaneous petitions are closed Consequently, connected miscellaneous petitions are closed”.

10.

We note that dates of TPO order and AY are same We note that dates of TPO order and AY are same We note that dates of TPO order and AY are same as in Saint

Gobain India (P.) Ltd. case (supra), therefore, respectfully espectfully following the

binding precedents of the jurisdictional High Court, we hold that the binding precedents of the jurisdictional High Court, we hold that the binding precedents of the jurisdictional High Court, we hold that the TPO

order dated 01.11.2019 is barred by limitation and void. order dated 01.11.2019 is barred by limitation and void.

Cross Objection No.85/Chny/2025 filed by the assessee is also Cross Objection No.85/Chny/2025 filed by the assessee is also Cross Objection No.85/Chny/2025 filed by the assessee is also

become infructuous in the light of the above fin become infructuous in the light of the above finding of limitation. ding of limitation.

11.

In the result, the Appeal of the Revenue is dismissed evenue is dismissed and Cross

Objection filed by the assessee Objection filed by the assessee is infructuous.

rder pronounced on the 22nd day of December, 2025, in Chennai. Order pronounced on the , in Chennai.

Sd/- Sd/ Sd/- (मनु कुमार कुमार िग�र) (एस. आर. रघुनाथा) (S.R.RAGHUNATHA S.R.RAGHUNATHA) (MANU KUMAR GIRI MANU KUMAR GIRI) लेखा सद)य/ACCOUNTANT MEMBER �याियक सद)य/JUDICIAL MEMBER /JUDICIAL MEMBER /ACCOUNTANT MEMBER

चे�नई/Chennai, *दनांक/Dated: 22nd December December, 2025. EDN, Sr. PS

& CO 85/Chny/2025 IT(TP)A No.26/Chny/2025 & CO 85/Chny/2025 (AY 2016-17) JOYSON ANAND ABHISHEK SAFETY SYSTEMS PVT. LTD. JOYSON ANAND ABHISHEK SAFETY SYSTEMS PVT. LTD. JOYSON ANAND ABHISHEK SAFETY SYSTEMS PVT. LTD. :: 24 :: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. , Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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