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2022 (5) TMI 1460 - AT - Income TaxValidity of order passed by Transfer Pricing u/s 92CA as beyond the time limit prescribed under section 92CA(3A) r.w.s 153 - how the period of 60 days prior to the date of transfer pricing order i.e. 01.11.2019 is to be computed? - HELD THAT:- Undisputedly, sub-section (3A) to section 92CA has been inserted w.e.f. 01.06.2007 providing time limit for the Transfer Pricing Officer to pass the order i.e. within a period of 60 days prior to the date of completion of assessment as per section 153. So, under section 92CA (3A) read with section 153, Ld. TPO was required to pass the order within the period of 60 days prior to the date on which the period of limitation referred to in section 153 expires i.e. 21 months. Undisputedly the assessment order was passed on 01.11.2019 whereas the Ld. TPO was required to pass the order within 60 days prior to the date of which period of limitation referred to in section 153 of the Act expires. Hon'ble Madras High Court in case of M/s. Pfizer Healthcare India Pvt. Ltd [2022 (4) TMI 808 - MADRAS HIGH COURT] while dealing with the issue held that for computing the period of 60 days, the last date as per section 153 should be excluded. Also see ECL Finance Ltd [2021 (9) TMI 1399 - ITAT MUMBAI] and Louis Dreyfus Commodities India Pvt. Ltd. [2021 (3) TMI 563 - ITAT DELHI] Thus we are of the considered view that as per limitation prescribed under section 153 of the Act that assessment order was required to be passed within a period of 21 months from the end of assessment year i.e. A.Y. 2016-17 and a further period of 12 months is to be added in case reference is made under section 92CA of the Act to the Ld. TPO, meaning thereby the period of 60 days expires to pass the transfer pricing order on 31.10.2019 whereas the transfer pricing order has been passed in this case on 01.11.2019 i.e. beyond the period of 60 days, hence barred by limitation. Since the order passed by the Ld. TPO is held to be barred by limitation the same is illegal, null and void ab-initio, hence quashed. Appeal of assessee allowed.
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