EVERSUB INDIA PRIVATE LIMITED ,HARYANA vs. DCIT CIRCLE-22(2), DELHI

Facts

The assessee challenged final assessment orders for Assessment Years 2017-18 and 2018-19, passed under Sections 143(3), 144C(13), and 144B of the Income Tax Act, 1961. The assessee contended that these orders were time-barred, having been issued on 25/02/2022 and 31/03/2022 respectively, beyond the extended statutory limitation period which expired on 30/09/2021 for both years. The Revenue sought deferral of the appeal, arguing that the issue of limitation (interplay between Sections 144C and 153) was pending adjudication before the Supreme Court.

Held

The Tribunal rejected the Revenue's request for deferral, noting that the Madras High Court's decision in `Roca Bathroom Products (P) Ltd.`, which held that the time limits under Section 153 are applicable and 144C/153 are mutually inclusive, had no stay. Following this binding precedent and consistent rulings from other ITAT benches, the Tribunal concluded that the final assessment orders were indeed time-barred and void. Consequently, the impugned assessment orders were quashed, though with liberty granted to the parties to seek revival if a future Supreme Court decision on the pending issue necessitates modification.

Key Issues

Whether final assessment orders passed under Sections 143(3), 144C(13), and 144B of the Income Tax Act, 1961, beyond the limitation period prescribed under Section 153, are time-barred and void ab initio, and whether the Tribunal should defer adjudication on such an issue when a similar question is pending before the Supreme Court.