NATIONAL OIL WELL VARCO PTE. LTD (FORMERLY KNOWN AS VARCO INTERNATIONAL PTE. LTD),MAHARASHTRA vs. THE DEPUTY DIRECTOR OF INCOME TAX CIRCLE-1( INTERNATIONAL TAXATION ), DEHRADUN

5. After considering the submissions and perused the additional ground of appeal taken, we find that the assessee has challenged the validity of the assessment order being barred by limitations as per section 153 of the Act. All the facts related to this ground of appeal i.e. the dates of various orders passed by the lower authorities are available with us thus requires no verification from the AO. Therefore, by respectfully following the judgement of Hon’ble Supreme Court as relied upon by the assessee, the additional ground of appeal taken by the assessee is admitted for adjudication in all the Assessment Years.

6. First, we take additional Ground of appeal raised by the assessee in all the Five assessment years.

1. 1. 1. 1. 8. Per contra, the Ld. Department's Representative submitted that the issue of limitation arising from the interplay between Section 144C and Section 153 of the Act is presently unsettled and pending adjudication before the Hon'ble Supreme Court in the case of ACIT Vs. Shelf Drilling Ron Tappmeyer Ltd. in Special Leave to Appeal (C) Nos. 20569-20572/2023 therefore, deciding the very same issue by this Tribunal at this stage would be premature, thus submitted that the Tribunal cannot decide the issue of limitation in terms of the ratio laid down by the Hon'ble High Court of Madras in the case of Roca Bathroom Products (P) Ltd. (supra). Accordingly, the Ld. Department's Representative sought for deferral of adjudication of the present Appeal and also the issue of limitation. The Ld. Department's Representative has also filed detail written submission.

9. The identical submissions of the parties have been considered by us in the case of Teva Pharmaceutical & chemical Industries India Private Limited Vs. Assessment Unit, Income Tax Department/DCIT in vide order dated 19/01/2026. The Co-ordinate Bench of the Tribunal while and rejecting the preliminary objection raised by the Revenue and also the request of the Department for deferring the hearing of the Appeal, held as under:- “3. The Ld. Senior Counsel for the Assessee also relied on the several orders of the Hyderabad Bench of the Tribunal, wherein the Co-ordinate Bench of the Tribunal decided the similar issue in favour of the Assessee by quashing the respective assessment orders by relying on the ratio laid down by the Hon'ble High Court of Madras in the case of Commissioner of Income Tax Vs. Roca Bathroom Products (P) Ltd. (supra). Further submitted that, the Tribunal has also reserved liberty to the parties to get the Appeals revived if the decision of the Hon'ble Supreme Court on the issue in hand necessitates National Oilwell Varco Pte. Ltd. vs. DCIT modification of the order of the Tribunal. Orders of the Hyderabad Tribunal relied by the Assessee are as under:- a) Aveva Solutions India LLP Vs. ITO-2025(12) TMI 1208 dated 19/11/2025. b) M/s Concentrix Catalyst Technologies (P) Ltd. Vs. Dy CIT- 2025 (12) TMI 1643 dated 05/12/2025 c) Shakti Hormann Private Limited Vs. DCIT, Circle-3(1)- 2025 (12) TMI 1351 dated 19/12/2025. d) M/s Western UP Tollway Limited, M/s MahuaBharatpur Expressways Ltd. Vs. DCIT, Circle 8(1) Hyderabad TMI-2025 (12) 1345 dated 12/12/2025. (e) DSM Shared Services India Private Limited Vs. The DCIT, Circle 8(1), Hyderabad- 2015 (12) TMI 1283 dated 12/12/2025. f) M/s TMEIC Industrial Systems India Private Limited, Hyderabad and Dy. Circle 2(1) Hyderabad, 2025 (12) TMI 1282 dated 12/12/2025. g) Interwrap Corporation Private Ltd Vs. DCIT Circle-5 (1), Hyderabad 2025 (12) TMI 1278 dated 10/12/2025. h) R.A. K. Ceramics India Private Limited, Hyderabad Vs. Dy. CIT, 2025 (12) TMI 1277 dated 10/12/2025. i) Parexel International (IRL) Limited Ireland Vs. ADIT 2025 (12) TMI 1276 dated 10/12/2025. j) Dr. Reddy’s Laboratories Limited vs. The ACIT 2025 (12) TMI 1275 dated 25/12/2205. k) Repal Green Power Private Limited Vs. the DCIT 2025 (12) TMI 1272 dated: 26/11/2025.

No. 3 of the Assessee.

7. Per contra, the Ld. Department's Representative at the outset requested not to decide the captioned Appeal and prayed for keeping the Appeal pending till the Larger Bench of the Hon'ble Supreme Court finally decides the case of Shelf Drilling Ron Tappmeyer Ltd. (supra). Further the Ld. Department's Representative submitted that there is a specific Interim Order passed by the Hon'ble Supreme Court on 22/09/2023 in the case of Assistant Commissioner of Income Tax Vs. Shelf Drilling Ron Tappmeyer Ltd. in Petitions for Special Leave to Appeal (C) Nos. 20569-20572/2023, wherein the Hon'ble Supreme Court has observed that the impugned Judgment (of Hon'ble High Court of Judicature at Bombay in the case of Shelf Drilling Ron Tappmeyer Ltd.) shall not be cited as precedent in any other subsequent matters until further order. Further submitted that the issue involved in the Roca Bathroom Products (P) Ltd. (supra) and in the case of Shelf Drilling Ron Tappmeyer Ltd. (supra), being identical, it should be construed that the interim order passed by the Hon'ble Supreme Court dated 22/09/2023 in the case of Shelf Drilling Ron Tappmeyer Ltd. shall also applicable to the ratio laid down by the Madras High Court in the case of Roca Bathroom Products (P) Ltd. (supra). Further submitted that the issue of limitation arising from the interplay between Section 144C and Section 153 of the Act is presently unsettled and pending adjudication before the Hon'ble Supreme Court and therefore, deciding the very same issue by this Tribunal at this stage would be premature, thus submitted that the Tribunal cannot decide the issue of limitation in terms of the ratio laid down by the Hon'ble High Court of Madras in the case of Roca Bathroom Products (P) Ltd. (supra). Accordingly, the Ld. Department's Representative sought for deferral of adjudication of the present Appeal and also the issue of limitation. The Ld. Department's Representative has also filed written submission which is reproduced as under:- “1. At the outset, the Revenue submits that the present written submissions are confined only to the preliminary issue of limitation arising from the interplay between section 144C and section 153 of the Income-tax Act, 1961. The Revenue National Oilwell Varco Pte. Ltd. vs. DCIT respectfully reserves the right to make comprehensive submissions on all other issues on merits, as and when the same are taken up for hearing. A. Introductory submission 2. The present appeals raise the issue whether, in cases governed by section 144C, the time consumed in the proceedings before the Dispute Resolution Panel ("DRP") is required to be subsumed within the limitation prescribed under section 153, or whether section 144C operates as a special statutory mechanism with its own distinct timelines for completing the assessment after passing the draft order.

3. The Revenue respectfully submits that this issue is presently unsettled and judicially pending before the Hon'ble Supreme Court. Therefore, final adjudication by this Hon'ble Tribunal at this stage would be premature and may result in avoidable multiplicity of proceedings and uncertainty in tax administration. B. Supreme Court/High Court proceedings governing the issue (i) Split verdict and Larger Bench reference - Shelf Drilling 4. In ACIT (International Taxation) v. Shelf Drilling Ron Tappmeyer Ltd. reported in [2025] 177 taxmann.com 262 (SC), the Hon'ble Supreme Court delivered a split verdict on the interpretation of sections 144C and 153 and referred the issue to a Larger Bench.

5. It is settled law that a split verdict declares no law under Article 141, and the legal position remains open until authoritatively settled by a majority decision. (ii) Interim restraint on citing the Bombay High Court judgment 6. At the admission stage of the matter arising from the Bombay High Court judgment in Shelf Drilling Ron Tappmeyer Ltd., the Hon'ble Supreme Court passed an interim order dated 22.09.2023, (Annexure-A), directing that the High Court judgment shall not be cited as a precedent in any other subsequent matter until further orders.

7. This interim order has not been vacated or modified and continues to bind. Interim orders subsist unless expressly vacated. (ii-a) Bombay High Court reiteration No.30944 of 2023, order dated 07.08.2024) Paypal Payments Pvt. Ltd. (WPL (L).

8. The Revenue further places reliance on the order dated 07.08.2024 passed by the Hon'ble Bombay High Court in Paypal Payments Private Limited v. ACIT (Writ Petition (L) No.30944 of 2023){Annexure-B). In the said order, the Hon'ble Bombay High Court, while considering the very issue of interpretation of section 144C(1), 144C(4) and 144C(13) vis-à-vis section 153, recorded that the Supreme Court had, on 22.09.2023, directed that the Shelf Drilling judgment shall not be cited as precedent and clarified that the operative portion applies only inter National Oilwell Varco Pte. Ltd. vs. DCIT partes. The Hon'ble High Court further noted that there was "quite a debate" on what one is permitted to do with the Shelf Drilling decision in view of the Supreme Court restraint.

9. The said order reinforces the Revenue submission that, pending Supreme Court adjudication, the Shelf Drilling Bombay High Court judgment does not operate as precedent for other matters and cannot be relied upon before this Hon'ble Tribunal.

10. Hon'ble Bombay HC, in its wisdom, has not quashed the assessment and gave the parties the liberty to apply in the event of rendering a final order by Hon'ble Supreme Court (iii) Grant of leave in Roca Bathroom and pendency before Hon'ble SC - legal implications 11. The Hon'ble Supreme Court has granted leave in CIT v. Roca Bathroom Products (P.) Ltd., reported in [2023] 147 taxmann.com 224 (SC) (Annexure-C). The grant of leave signifies that the issue is admitted for final adjudication, and the correctness of the Madras High Court judgment stands squarely under scrutiny. The order granting leave does not affirm the High Court's view, nor does it declare law. Once leave is granted, the High Court judgment loses finality.

12. It is respectfully submitted that the ratio laid down by the Hon'ble Bombay High Court in Shelf Drilling Ron Tappmeyer Ltd. and by the Hon'ble Madras High Court in Roca Bathroom Products (P.) Ltd. arises on the same legal controversy, namely the computation of limitation involving the interplay of sections 144C and 153. The principle enunciated in both decisions is, in substance, identical-ie., that the timelines under section 153 continue to govern and must subsume the DRP mechanism under section 144C. In this context, it is material that the Hon'ble Supreme Court has passed a specific interim direction that the judgment of the Hon'ble Bombay High Court in Shelf Drilling shall not be cited as a precedent in any other subsequent matter. The Revenue, therefore, submits that, when the Supreme Court has expressly restrained reliance on the Shelf Drilling ratio, the same cannot be permitted to be applied indirectly through another non- jurisdictional decision laying down an identical proposition, particularly when Roca Bathroom itself is under appeal, and leave has been granted by the Hon'ble Supreme Court. Accordingly, Roca Bathroom cannot be treated as determinative or enforced as a basis to conclude the controversy, and the issue ought to await authoritative settlement by the Hon'ble Supreme Court. C. Revenue's interpretative submissions on sections 144C and 153 (without prejudice) 13. Without prejudice to the prayer for deferral, the Revenue respectfully submits that section 144C was introduced to create a structured and time-bound pre- finalization review mechanism before a panel of Commissioners in cases involving "eligible assessees". The legislative design of section 144C indicates that it is a National Oilwell Varco Pte. Ltd. vs. DCIT special statutory mechanism and cannot be interpreted in a manner that renders the scheme unworkable. Therefore, the timelines prescribed under section 153 will not apply to the final assessment order passed u/s 144C(13) of the Income Tax Act.

14. Section 144C prescribes a complete statutory cycle: passing of draft order, right to file objections; DRP directions within statutorily defined time; and final order thereafter within a statutorily defined time. The Act itself allocates specific time windows. indicating that Parliament contemplated a multi-stage mechanism operating beyond the draft assessment order.

15. A harmonious construction suggests that section 153 governs the stage up to passing of the draft order in time, while the special regime of section 144C governs completion after the draft stage. Otherwise, the mandatory statutory time windows within section 144C would be rendered redundant or illusory.

16. Moreover, the non obstante language in section 144C dealing with passing of the final order makes it evident that Parliament intended post-draft finalisation under section 144C to operate notwithstanding the general limitation in section 153.

17. A further significant facet is that the eligible assessee activates the DRP route. If objections are not filed, the statute permits expedited finalisation. If objections are filed, the statutory mechanism consumes time by design. The assessee cannot, after choosing the statutory route, contend that the assessment becomes void due to the time consumed in the process statutorily created for his benefit.

10. In view of the above, the assessee's contention is required to be rejected as the final assessment order is within the time limits prescribed under section 144C D. Issue presently judicially pending: combined effect 19. In the present circumstances: (i) the Bombay High Court judgment in 'Shelf Drilling Ron Tappmeyer Ltd. is under an express Supreme Court restraint on citation: (ii) the Madras High Court judgment in the case of 'Roca Bathroom' is under appeal with leave granted; and (iii) the Supreme Court has delivered a split verdict in Shelf Drilling Ron Tappmeyer Ltd and referred the issue to a Larger Bench.

22. The Hyderabad Bench has proceeded to finally quash the assessment on this issue by relying upon non-jurisdictional High Court decisions and by taking note of the Supreme Court proceedings. With respect, the approach is legally vulnerable for the following reasons: (1) Supreme Court restraint overlooked: The Supreme Court has expressly restrained, citing the Bombay High Court judgment in Shelf Drilling as precedent. Any reasoning that substantially draws strength from the Bombay High Court view is inconsistent with such restraint (ii) Internal inconsistency pendency acknowledged yet final relief granted: The Hyderabad order notes the issue is pending before the Supreme Court / Larger Bench, but proceeds to grant final relief. Once a matter is acknowledged as pending authoritative adjudication, judicial discipline favours deferral, (iii) Conditional final relief with "revival liberty" is procedurally unsound: The adoption of a device of quashing with "liberty to revive based on Supreme Court outcome is not contemplated within the statutory appellate framework and creates uncertainty.

23. Accordingly, the Hyderabad Bench order does not furnish a safe precedent for the disposal of the present appeals before this Hon'ble Tribunal. F. No prejudice to assessee; demand protection already available 24. Without prejudice, the Revenue respectfully submits that deferral of adjudication on the limitation issue causes no prejudice to the assessee. It is a matter of record in several cases where Roca Bathroom has been relied upon by assessees that either (1) stay of demand has been granted by the Tribunal, or (ii) the Assessing Officers are not pressing for coercive recovery during pendency. Therefore, the assessee is adequately protected against hardship, and deferral would serve the larger interest of uniformity and certainty. G. Judicial propriety and institutional restraint 25. Where a controversy is pending before a Larger Bench of the Hon'ble Supreme Court, judicial discipline warrants restraint by subordinate forums.

26. In the present matter, this is fortified by: (i) a Larger Bench reference, (ii) grant of leave in Roca Bathroom; (iii) an express Supreme Court restraint on citing the Bombay High Court judgment.

H. Approach of Hon'ble ITAT Delhi 28. It is respectfully submitted that the Hon'ble ITAT, Delhi, has consistently adopted a prudent and institutionally sound approach in matters where the assessee raises the preliminary issue of limitation involving the interplay of sections 144C and 153, by adjourning such matters sine die/deferring adjudication, noting that the controversy is pending consideration before the Hon'ble Supreme Court. The Revenue submits that this consistent approach is fully justified to ensure judicial uniformity and avoid multiplicity of proceedings. Even after the split verdict in Shelf Drilling, the legal position remains that no binding law has been declared under Article 141, and the issue continues to be pending before the Hon'ble Supreme Court for final determination by an appropriate Larger Bench. Therefore, the status quo ante continues, and there is no change in circumstances warranting a departure from the settled course already followed by this Hon'ble Tribunal. In these circumstances, it would be most appropriate that the Hon'ble ITAT, Delhi, continues its consistent practice of deferring adjudication on the limitation issue, rather than proceeding to decide the matter when the controversy is awaiting authoritative settlement by the Hon'ble Supreme Court. I. Prayer 29. The Revenue is not pressing adjudication on merits and respectfully prays that this Hon'ble Tribunal may: (i) defer adjudication of the present preliminary issue of limitation; and (ii) take up the appeals on this issue after the Hon'ble Supreme Court finally settles the law authoritatively.

(2) The Principal Commissioner or the Commissioner shall, on receipt of a communication from the collegium under sub-section (1), notwithstanding anything contained in sub-section (3) of section 253 or clause (a) of sub-section (2) of section 260A, direct the Assessing Officer to make an application to the Appellate Tribunal or the jurisdictional High Court, as the case may be, in such form as may be prescribed within a period of one hundred and twenty days from the date of receipt of the order of 29[the Joint Commissioner (Appeals) or] the Commissioner (Appeals) or of the Appellate Tribunal, as the case may be, stating that an appeal on the question of law arising in the relevant case may be filed when the decision on such question of law becomes final in the other case.

(3) The Principal Commissioner or Commissioner shall direct the Assessing Officer to make an application under sub-section (2) only if an acceptance is received from the assessee to the effect that the question of law in the other case is identical to that arising in the relevant case; and in case no such acceptance is received, the Principal Commissioner or Commissioner shall, notwithstanding anything contained in sub-section (3) of section 253 or clause (a) of sub-section (2) of section 260A, proceed in accordance with the provisions contained in sub-section (2) of section 253 or in clause (c) of sub- section (2) of section 260A.

(4) Where the order of 29[the Joint Commissioner (Appeals) or] the Commissioner (Appeals) or the order of the Appellate Tribunal, as the case may be, referred to in sub- section (1) is not in conformity with the final decision on the question of law in the other case, as and when such order is received, the Principal Commissioner or Commissioner may direct the Assessing Officer to appeal to the Appellate Tribunal or the jurisdictional High Court, as the case may be, against such order and save as otherwise provided in this section all other provisions of Part B and Part CC of Chapter XX shall apply accordingly. (5) Every appeal under sub-section (4) shall be filed within a period of sixty days to the Appellate Tribunal or one hundred and twenty days to the High Court, as the case may be, from the date on which the order of the jurisdictional High Court or the Supreme Court in the other case is communicated to the Principal Commissioner or the Commissioner (having jurisdiction over the relevant case), in accordance with the procedure specified by the Board in this behalf. Explanation.—For the purposes of this section, "collegium" means a collegium comprising of two or more Chief Commissioners or Principal Commissioners or Commissioners, as may be specified by the Board in this behalf.”

National Oilwell Varco Pte. Ltd. vs. DCIT Thus, in our opinion, it is for the Revenue to adopt the procedure contemplated u/s 158AB of the Act where an identical question of law is pending before the Hon'ble High Court or the Supreme Court.

11. Further, the Hon'ble Supreme Court in the case of Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association (1992) 3 SCC 1, held that, mere grant of stay does not obliterate the binding nature of the Judgment passed by the Hon'ble High Court in following manners:- “In the instant case, the proceedings before the Board under ss. 15 and 16 of the Act had been terminated by order of the Board dated April 26, 1990 whereby the Board, upon consideration of the facts and material before it, found that the appellant-company had become economically and commercially non-viable due to its huge accumulated losses and liabilities and should be wound up. The appeal filed by the appellant-company under s. 25 of the Act against said order dated January 7, 1991. As a result of these orders, no proceedings under the Act was pending either before the Board or before the Appellate Authority on February 21, 1991 when the Delhi High Court passed the interim order staying the operation of the Appellate Authority dated January 7, 1991. The said stay order of the High Court cannot have the effect of reviving the proceedings which had been disposed of by the Appellate Authority by its order dated January 7, 1991. While considering the effect of an interim order staying the operation of the order under challenge, a distinction has to be made between quashing of an order and stay of operation of an order Quashing of an order results in the restoration of the position as it stood on the date of the passing of the order which has been quashed. The stay of operation of an order does not, however, lead to such a result. It only means that the order which has been stayed would not be operative from the date of the passing of the stay order and it does not mean that the said order has been wiped out from existence. This means that if an order passed by the Appellate Authority is quashed and the matter is remanded, the result would be that the appeal which had been disposed of by the said order of the Appellate Authority would be restored and it can be said to be pending before the Appellate Authority after the quashing of the order of the Appellate Authority. The same cannot be said with regard to an order staying the operation of the order of the Appellate Authority because in spite of the said order, the order of the Appellate Authority continues to exist in law so long as it exists, it cannot be said that the appeal which has been disposed of by the said order has not been disposed of and is still pending. We are, therefore, of the opinion that the passing of the interim order dated February 21, 1991 by the Delhi High Court staying the operation of the order of the Appellate Authority dated January 7, 1991 does not have the effect of reviving the appeal which had been dismissed by the Appellate Authority by its order dated January 7, 1991 and it cannot be said that after February 21, 1991, the said appeal stood revived and was pending before the Appellate Authority. In that view of the matter, it cannot be said that any proceedings under the Act were pending before the Board or the Appellate Authority on the date of the passing of the order dated August 14, 1991 by the learned Single Judge of the Karnataka High Court for winding up of the company or on November 6, 1991 when the Division Bench passed the order dismissing O.S.A. No. 16 of 1991 filed by the appellant- company against the order of the learned Single Judge dated August 14, 1991. Section 22(1) of the Act could not, therefore, be invoked and there was no impediment in the High National Oilwell Varco Pte. Ltd. vs. DCIT Court dealing with the winding up petition filed by the respondents. This is the only question that has been canvassed in Civil Appeal No. 126 to 1992, directed against the order for winding up of the appellant-company. The said appeal, therefore, fails and is liable to be dismissed.”

12. Further the Hon'ble High Court of Bombay in the case of CIT v. Smt. Godavari Devi Saraf (1978) 113 ITR 589, observed that Income Tax Act is an all India statute and until a contrary decision given by any other competent High Court, the ratio laid down by the Hon'ble High Court is binding on the Tribunal. The relevant portion of the Judgment of Hon'ble High Court of Bombay is as under: – 9 ......It should not be overlooked that the Income-tax Act is an All-India statute and if an Income-tax Tribunal in Madras, in view of the decision of the Madras High Court, has to proceed on the footing that section 1404(3) was non-existent, the order of penalty there under cannot be imposed by the authority under the Act. Until a contrary decision is given by any other competent High Court, which is binding on a Tribunal in the State of Bombay, it has to proceed on the footing that the law declared by the High Court, though of another State, is the final law of the land..... Emphasis Supplied 13. Further the Co-ordinate Bench of the Tribunal of Mumbai Bench in the case of Kaybee Pvt. Ltd. v. ITO in vide order dated 28.02.2020 followed the Judgment Hon'ble High Court of Bombay in the case of CIT v. Smt. Godavari Devi Saraf (supra) and held as under – "11. It is also important to note that once a higher judicial forum takes a decision one way or the other, all the decisions of the Tribunal, whether division benches or special benches, cease to be relevant. In the case of Tej International Pvt Ltd Vs DCIT (118 Taxman 59 (Mag)/ 69 TTJ 650), a coordinate bench has, on this issue, observed that "In the hierarchical judicial system that we have, better wisdom of the Court below has to yield to higher wisdom of the Court above and, therefore, one a authority higher than this Tribunal has expressed an opinion on that issue, we are no longer at liberty to rely upon earlier decisions of this Tribunal even if we were a party to them. Such a High Court being a non- jurisdictional High Court does not alter the position as laid down by Hon'ble Bombay High Court in the matter of CIT v. Godavari Devi Saraf [1978] 113 ITR 589 (Bom.). Therefore, we do not consider it permissible to rely upon the earlier decisions of this Tribunal".

15. Further specific query was made by the Bench to both the parties on the orders passed by the Co-ordinate Bench of the Tribunal at Hyderabad, wherein the Appeals have been decided on the issue of limitation relying on the Judgment of Hon'ble High Court of Madras in the case of Roca Bathroom Products (P) Ltd. (supra). It was informed to the Bench that none of the orders of the Tribunal Hyderabad Bench are stayed by the Jurisdictional High Court.

17. The Co-ordinate Bench of the Tribunal of Hyderabad Bench in the case of Interwrap Corp Private Ltd (Successor of Owens Corning Industries (India) Pvt. Ltd. (Successor of Owens Corning Industries (India) Private Limited Verses The Deputy Commissioner of Income Tax, Circle-5(1), Hyderabad in reported in 2025 (12) TMI 1278-ITAT Hyderabad dated 10/12/2025, considered overall circumstances including the Interim Order passed in the case of Shelf Drilling Ron Tappmeyer Ltd. by the Hon'ble Supreme Court and decided the issue of limitation in favour of the Assessee by following the Judgment of Bombay High Court in the case of Roca Bathroom Products Pvt. Ltd (supra). The Co-ordinate Bench of the Tribunal also safeguarded the interest of the parties by granting liberty. The relevant portions of the order in the case ofInterwrap Corp Private Ltd (supra) are as under:- “17. The sum and substance of the ratio laid down by the Hon'ble Madras High Court in the case of CIT Vs. Roca Bathroom Products Private Limited (supra) and the Hon'ble Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Limited Vs. ACIT, International Taxation (supra), which was later followed by the Co-ordinate Bench of the Tribunal in the case of Aveva Solutions India LLP, Hyderabad Vs. ITO (supra), is) that the upper time limit provided under Section 153(1) and Section 153(4) of the Act is applicable for the final assessment order passed by the A.O. under Section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act. In case the final assessment order passed by the A.O. under Section 143(3) r.w.s. 144C(13) r.w.s. 144B is beyond the upper time limit provided under Section 153(1) and Section 153(4) of the Act, then the said order is beyond the limitation prescribed and liable to be quashed. In the present case, there is no dispute with regard to the fact that the normal time limit available for National Oilwell Varco Pte. Ltd. vs. DCIT passing the assessment order, as per the provisions of Section 153(1) of the Act, is 18 months from the end of the relevant assessment year, which would expire on 30.09.2020 for A.Y. 2018-19. Further, as per the provisions of Section 153(4) of the Act, where a reference under Section 92CA of the Act was made to the Transfer Pricing Officer (TPO), the time) limit available stands extended by another 12 months, and in the present case, the upper time limit for completion of assessment proceedings would expire on 30.09.2021.

19. We further noted that, although the decisions of the Hon'ble Madras High Court in the case of CIT Vs. Roca Bathroom Products Private Limited (supra) and the Hon'ble Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Limited Vs. ACIT, International Taxation (supra) are in favour of the assessee, and we dispose of the appeal filed by the assessee by following the above two decisions and quashed the assessment order, but the fact remains that the revenue has challenged the decision of the Hon'ble Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Limited Vs. ACIT, International Taxation (supra) by filing an SLP before the Hon'ble Supreme Court, and the Hon'ble Supreme Court has disposed of the appeal. Further, the Hon'ble Supreme Court has delivered a split verdict by two Hon'ble Judges on this issue, i.e., one in favour of the revenue and one in favour of the assessee. Therefore, in our considered view, the matter is still pending for adjudication before the Hon'ble Supreme Court in the case Shelf Drilling Ron Tappmeyer Limited Vs. ACIT, International Taxation (supra) and is to be resolved by a Larger Bench of the Hon'ble Supreme Court on this issue. Therefore, considering the present legal position, we keep all other issues raised by the assessee, including the admitted additional ground relating to DIN compliance, open. The parties shall be at liberty to seek revival of the appeal for adjudication of the remaining issues, if the decision of the Hon'ble Supreme Court on the above question necessitates modification of this order. Accordingly, we dispose of this appeal on this legal issue and keep open the other issues raised by the assessee on merits, in case the Hon'ble Supreme Court decides the issue otherwise.”

18. In view of the above discussion and also following the ratio laid down by the Co- ordinate Bench of the Tribunal of Hyderabad Bench (supra), we reject the preliminary objection raised by the Revenue and the request for deferring the hearing made by the Department.”

National Oilwell Varco Pte. Ltd. vs. DCIT 10. In view of the above, by following the ratio laid down by the Co-ordinate Bench of the Tribunal of Hyderabad Bench (supra) and also the order of the Co-ordinate Bench of the Tribunal in the case of Teva Pharmaceutical & Chemical Industries India Private Limited (supra), we reject the preliminary objection raised by the Revenue and the request of the Department for deferring the hearing.

12. For the sake of ready reference, relevant dates are tabulated as under:

Particulars of AY 2012-13 AY 2013-14 AY 2014-15 AY 2015-16 AY 2017-18 Proceedings Date of Draft 16.12.2015 16.12.2016 09.06.2017 24.09.2018 12.11.2020 assessment order u/s 144C(1)of the Act passed. Limitation for 24 months 24 months 18 months 18 months 18 months passing of final from the end from the end from the end from the end from the end assessment order as of relevant of relevant of relevant of relevant of relevant per section 153(1) AY i.e. AY i.e. AY i.e. AY i.e. AY i.e. read with section 31.03.2015 31.03.2016 31.12.2016 31.12.2017 31.12.2019 153(4) of the Act. Date of DRP 16.12.2015 16.12.2016 09.06.2017 24.09.2018 12.11.2020 directions u/s 144C(5) of the Act issued. Final Assessment 27.01.2016 27.12.2016 29.06.2017 24.11.2018 01.02.2021 order u/s 143(3) r.w.s. 144C(13) and 144B of the Act.

National Oilwell Varco Pte. Ltd. vs. DCIT 12. In Canada Sugar Refining Co. v. R. [1898 AC 735 : 67 LJPC 126] , Lord Davy observed: “Every clause of a statute should be construed with reference to the context and other clauses of the Act, so as, as far as possible, to make a consistent enactment of the whole statute or series of statutes relating to the subject-matter.” ……….

14. This rule of construction which is also spoken of as “ex visceribusactus” helps in avoiding any inconsistency either within a section or between two different sections or provisions of the same statute.

15. On a conspectus of the case-law indicated above, the following principles are clearly discernible: (1) It is the duty of the courts to avoid a head-on clash between two sections of the Act and to construe the provisions which appear to be in conflict with each other in such a manner as to harmonise them. (2) The provisions of one section of a statute cannot be used to defeat the other provisions unless the court, in spite of its efforts, finds it impossible to effect reconciliation between them. (3) It has to be borne in mind by all the courts all the time that when there are two conflicting provisions in an Act, which cannot be reconciled with each other, they should be so interpreted that, 22 if possible, effect should be given to both. This is the essence of the rule of “harmonious construction”. (4) The courts have also to keep in mind that an interpretation which reduces one of the provisions as a “dead letter” or “useless lumber” is not harmonious construction. (5) To harmonise is not to destroy any statutory provision or to render it otiose.” (ii) CIT v. Hindustan Bulk Carriers, (2003) 3 SCC 57 : 2002 SCC OnLine SC 1226: 16. The courts will have to reject that construction which will defeat the plain intention of the legislature even though there may be some inexactitude in the language used. (See Salmon v. Duncombe [(1886) 11 AC 627 : 55 LJPC 69 : 55 LT 446 (PC)] AC at p. 634, Curtis v. Stovin[(1889) 22 QBD 513 : 58 LJQB 174 : 60 LT 772 (CA)] referred to in S. Teja Singh case [AIR 1959 SC 352 : (1959) 35 ITR 408]).

18. The statute must be read as a whole and one provision of the Act should be construed with reference to other provisions in the same Act so as to make a consistent enactment of the whole statute.

19. The court must ascertain the intention of the legislature by directing its attention not merely to the clauses to be construed but to the entire statute; it must compare the clause with other parts of the law and the setting in which the clause to be 23 interpreted occurs. (See R.S. Raghunath v. State of Karnataka [(1992) 1 SCC 335 :

National Oilwell Varco Pte. Ltd. vs. DCIT 1992 SCC (L&S) 286 : (1992) 19 ATC 507 : AIR 1992 SC 81] .) Such a construction has the merit of avoiding any inconsistency or repugnancy either within a section or between two different sections or provisions of the same statute. It is the duty of the court to avoid a head-on clash between two sections of the same Act. (See Sultana Begum v. Prem Chand Jain [(1997) 1 SCC 373 : AIR 1997 SC 1006]).” (iii) Franklin Templeton Trustee Services (P) Ltd. v. AmrutaGarg, (2021) 6 SCC 736 : 2021 SCC OnLine SC 88 at page 752: “17. The concept of “absurdity” in the context of interpretation of statutes is construed to include any result which is unworkable, impracticable, illogical, futile or pointless, artificial, or productive of a disproportionate counter-mischief [ See Bennion on Statutory Interpretation, 5th Edn., p.969.] Logic referred to herein is not formal or syllogistic logic, but acceptance that enacted law would not set a standard which is palpably unjust, unfair, unreasonable or does not make any sense. [Bennion on Statutory Interpretation, 5th Edn., p. 986.] When an interpretation is beset with practical difficulties, the courts have not shied from turning sides to accept an interpretation that offers a pragmatic solution that will serve the needs of society [Id, p. 971, quoting Griffiths, L.J.] .Therefore, when there is choice between two interpretations, we would avoid a “construction” which would reduce the legislation to futility, and should rather accept the “construction” based on the view that draftsmen would legislate only for the purpose of bringing about an effective result. We must strive as far as 24 possible to give meaningful life to enactment or rule and avoid cadaveric consequences [See Principles of Statutory Interpretation by Justice G.P. Singh, 14th Edn., p. 50.]”

23. Further, similar non-obstante clause is also used in section 144C(4) with a same limited purpose to imply, even though there might be a larger time limit under Section 153, once the order of TPO is accepted or not objected to, causing a deeming fiction of acceptance, the final order is to be passed immediately. The object is to conclude the proceedings as expeditiously as possible and the authority need not wait for the last date to pass the orders. The limitation prescribed under the statute is for the assessing officer and therefore, it is his duty to pass order in time irrespective of whether the directions are received from DRP or not. As held by us above, the DRP will have no authority to issue directions after nine months and a further period of one month as per section 144C (13) and three months under section 153 (2A) is available, within which period no orders have been passed in the present cases. The reference made by the learned senior counsels on the judgments in Nokia India Private Ltd (supra) and Vedanta Ltd (Supra) is well founded. The timeline given under the Act is to be strictly followed.

National Oilwell Varco Pte. Ltd. vs. DCIT 21. In SB Gurbaksh Singh v. Union of India ((1976) 2 SCC 181 1976 SCC (Tax) 177: (1976) 37 STC 425] Untwalia, J., speaking for the Bench, opined (SCC p. 188, para 15) 15. Apropos the fourth and the last submission of the appellant, suffice it to say that even assuming that the revisional power cannot be exercised suomotu after an unduly long delay, on the facts of this case it is plain that it was not so done. Within a few months of the passing of the appellate order by the Assistant Commissioner, the Commissioner proceeded to revise and revised the said order. There was no undue or unreasonable delay made by the Commissioner. It may be stated here that an appeal has to be filed by an assessee within the prescribed time and so also a time-limit has been prescribed for the assessee to move in revision. The appellate or the revisional powers in an appeal or revision filed by an assessee can be exercised in due course. No time-limit has been prescribed for it. It may well be that for an exercise of the suomotu power of revision also the revisional authority has to initiate the proceeding within a reasonable time. Any unreasonable delay in exercise may affect its validity. What is a reasonable time, however, will depend upon the facts of each case"

National Oilwell Varco Pte. Ltd. vs. DCIT 16. Since above issue of Limitation is pending adjudication before the Hon'ble Supreme Court in case of Shelf Drilling Ron Tappmeyer Ltd. (supra) and to be reached finality by the Larger Bench of the Hon'ble Supreme Court, we grant liberty to the parties to get the present Appeals revived for adjudication of the other issues on merits if the decision of the Hon'ble Supreme Court on this issue necessitates modification of this order. Accordingly, we dispose-off all the Five captioned appeals on the limited legal issue of limitation with liberty as mentioned above to the parties and keep open other issues raised by the Assessee on merits, subject to the outcome of the Judgment of the larger bench of the Hon’ble Supreme Court in the case of Shelf Drilling Ron Tappmeyer Ltd. (supra).

Order pronounced in the open court on 27.01. 2026.