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2023 (7) TMI 401 - AT - Income TaxValidity of order u/s 92CA (3) on the ground of limitation as contemplated u/s 153 - Time limit for completing the assessment u/s 153 - assessee has TP issues and AO makes reference to the Ld. TPO for determination of Arm’s Length Price of international transaction - computation of period of limitation is 21 months + further time of 12 months is available for passing of the order due to TP issues HELD THAT:- As the extended time limit available to the AO for passing the final order in the present case is 33 months ending on 31st December, 2016. According to the provisions of Sec.92CA(3) such order should be passed at any time before 60 days prior to the date on which the period of limitation be prescribed u/s 153 expires. In this case, the period of limitation expires on 30th December, 2016, therefore, the Ld. TPO should have passed an order u/s 92CA(3) of the Act on or before 31/10/2016, however, such TP order is passed on 01/11/2016, therefore, naturally the order passed by the Ld. TPO is barred by limitation. In such a situation,in the case of M/s Pfizer India Healthcare Pvt. Ltd. [2021 (2) TMI 1152 - MADRAS HIGH COURT] as the order dated 07/09/2020 has quashed the TPO order. Accordingly, we respectfully following the decision of Hon’ble Madras High Court which has been further affirmed by in DCIT Vs. Saint Gobain India Pvt. Ltd [2022 (4) TMI 808 - MADRAS HIGH COURT] quash the T P order . As the order of the Ld. TPO is barred by limitation, there is no variation to the income of the assessee pursuance to the reference made the Ld. TPO. Accordingly, assessee does not qualify to be an eligible assessee u/s 144C(15)(b). Thus, the moment the order of the TPO is quashed the assessee ceases to be an ‘eligible assessee’. Therefore, in that circumstances the time limit for completion of the assessment reverts back to 21 months. However, in this case the final assessment order is passed on 26th October, 2017, same is also time barred. Accordingly, the final assessment order is also quashed. Decided in favour of assessee.
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