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2023 (8) TMI 629 - AT - Income TaxValidity of the order passed u/s. 92CA(3) - period of limitation - HELD THAT:- As the time limit for passing of the order by the Ld.TPO under section 92CA(3A) is linked with the time limit, as mentioned in section 153(1) of the Act. We find that, the Finance Act, 2007 inserted sub-section (3A) carrying the time limit of sixty days for passing of the order by the Ld.TPO before the expiry of time limit for completion of assessment by the Ld.AO u/s.153. The word “may” used in section 92CA(3A), might connote merely an enabling or permissive power in the sense of the usual phrase, but it is also capable of being construed as referring to a compellable duty, particularly when it refers to a power conferred on a court or an authority. Therefore despite the use of the word 'may', in section 92CA (3A), the time limit for passing the order by the Ld. TPO is mandatory. TPO is bound by the time limit for passing of his order. Thus the time limit given in sub-section (3A) of section 92CA is mandatory for the passing of the order u/s. 92CA(3) by the Ld. TPO. Based on the interpretation by PFIZER HEALTHCARE INDIA (P.) [2021 (2) TMI 1152 - MADRAS HIGH COURT] the period of 60 days prior to the time limit as per section 153(1), available with the Ld. TPO, for passing his order u/s. 92CA(3), for the years under consideration is to be calculated accordingly. TPO admittedly has passed the order u/s. 92CA(3) on 30.01.2014 and 30.01.2015, which is beyond the period of limitation and therefore deserves to be quashed. We therefore allow the Ground no. 1 raised by the assessee.
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