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2016 (7) TMI 1633 - AT - Income TaxValidity of proceedings u/s. 92CA(3) after expiry of limitation period - period of limitation - Time limit for completion of assessments - Whether the procedure order is passed beyond the limitation of time? - irregularity in the procedure - HELD THAT:- Honda Trading Corporation [2015 (9) TMI 846 - ITAT DELHI] wherein, it has been held that the time limit specified u/s 92CA(3A) is mandatory and not directory and therefore the TPO is bound by the time limit for passing of the order u/s 92CA (3) of the act. Accordingly, in that case time limit as per section 153(1) of the Act was up to 7.06.2014 and TPO passed his order on 31.05.2014 instead of on or before 08.04.2014, hence order passed by the TPO in that case was held to be time barred. The coordinate bench has further held that in such circumstances the final assessment order would be same but the addition on account of transfer pricing adjustment arising from the determination of the ALP of the international transaction by the TPO emanating from his time barred order is unsustainable and therefore the coordinate bench directed for deletion of addition on account of transfer pricing adjustment made in the final assessment order. Thus the order of the ld. TPO passed on 31.12.2014 is barred by limitation and liable to be quashed. Therefore, consequently, the addition on account of transfer pricing adjustment does not survive. In view of this ground No. 2 of the appeal of the assessee is allowed.
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