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2024 (5) TMI 151 - ITAT MUMBAITime limit to pass assessment u/s. 92CA(3) - time line for passing of the order u/s. 92CA(3) of the Act for the purpose of reckoning the time period for completion of the assessment - HELD THAT:- The assessee has relied on the said decision of the Hon'ble High Court of Madras which has held that the time period prescribed under the said provision is mandatory and not discretionary though the word used in the statute is “may”. The assessee has also placed reliance on the decision of Saint Gobain India (P) Ltd. [2022 (4) TMI 808 - MADRAS HIGH COURT]which has again reiterated that on identical facts, TPO should have passed the order on or before 31.10.2019 and any order passed beyond this would be barred by limitation, holding the ld.TPO's order to be nonest in the eyes of law, consequently the draft assessment order is also held to be invalid. In the case of an invalid transfer pricing order and the draft assessment order, the ld. A.O. has no jurisdiction to assess u/s. 144C of the Act holding the assessee to be not an ‘eligible assessee’ as per section 144C(15)(b)(i) of the Act. On the above observation, where this issue has been dealt with extensively by the Hon'ble High Court, we are inclined to hold the ld. TPO's order dated 01.11.2019, draft assessment order and the final assessment order dated 27.03.2021 is barred by limitation as per the provision of section 92CA(3) and, hence, the subsequent draft assessment order and the final assessment order is, therefore, liable to be quashed on this ground. Hence, the additional ground raised by the assessee are hereby allowed.
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