AT&T COMMUNICATION SERVICES INDIA PRIVATE LIMITED,NEW DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), DELHI

ITA 5593/DEL/2024Status: DisposedITAT Delhi01 October 202615 pages
AI SummaryAllowed

What were the facts?

The assessee, AT&T Communication Services India Private Ltd., is engaged in providing support services to overseas AT&T Group entities. For Assessment Year 2021-22, the assessee filed its return of income. The Assessing Officer (AO) referred international transactions to the Transfer Pricing Officer (TPO). The AO passed a final assessment order dated 29.10.2024 under section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961, pursuant to directions from the Dispute Resolution Panel (DRP). The assessee appealed this order, raising grounds related to the assessment's validity, quantum of additions, and transfer pricing adjustments. A key ground concerned the assessment order being barred by limitation under section 144C(13) of the Act.

What did the Tribunal hold?

The Tribunal held that the final assessment order dated 29.10.2024 was barred by limitation under section 144C(13) of the Act. The Tribunal noted that the DRP's directions were issued on 29.08.2024 and uploaded on the ITBA portal on the same date, constituting valid communication. Therefore, the period for completing the assessment expired on 30.09.2024. The Tribunal relied on the jurisdictional High Court decisions in Louis Dreyfus Company India (P.) Ltd. v. DCIT and PCIT v. Fiberhome India (P.) Ltd., which held that uploading DRP directions on the ITBA portal is sufficient communication and that the specific limitation under section 144C(13) is mandatory. Since the assessment order was passed beyond this period, it was deemed unsustainable in law. Consequently, Ground No. 3 raised by the assessee was allowed. The Tribunal found that as the assessment itself was vitiated on the preliminary issue of limitation, the remaining grounds concerning the merits of additions and adjustments became academic and did not require adjudication. Ground No. 4 was not pressed by the assessee.

What were the issues?

1. Whether the final assessment order dated 29.10.2024 passed by the Ld. AO under section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act is barred by limitation as provided under section 144C(13) of the Act. Assessee's Contention: The assessee argued that the DRP's directions were passed on 29.08.2024 and uploaded on the ITBA portal on the same date. Section 144C(13) mandates completion of assessment within one month from the end of the month of receipt of directions, i.e., by 30.09.2024. Since the final assessment order was passed on 29.10.2024, it is time-barred. Revenue's Contention: The revenue contended that the final assessment order was passed within the permissible statutory period, considering the entire scheme of section 144C and related provisions governing assessment completion.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 144C(5),Section 153,Section 153B,Section 92C(3),Section 92D,Section 10D,Section 250,Section 143(1),Section 234A,Section 234B,Section 234C,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: MS KAVITHA RAJAGOPAL & SMT. RENU JAUHRI

For Appellant: Shri Ravi Sharma, Advocate; &, Shri Kshitij Bansal & Ms Supriya
For Respondent: Shri Mahesh Kumar, CIT, DR
Hearing: 02.07.2026Pronounced: 01.10.2026

Per Kavitha Rajagopal, JM: This appeal is filed by the assessee challenging the final assessment order passed by the Ld. Assessing Officer (‘the Ld. AO’, for short) u/s 143(3) r.w.s 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (‘the Act’, for short) dated AT & T Communication Service India (P) Ltd. Vs. ACIT

29.10.

2024 pursuant to the direction of the Hon’ble Dispute Resolution Panel (‘the Hon’ble DRP’, for short) relevant to Assessment Year 2021-22. 2. The assessee has raised the following grounds of appeal:- “1. On the facts and circumstances of the case & in law, the final assessment order under section 143(3) r.w.s.

The order continues below.

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