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2023 (8) TMI 1010 - AT - Income TaxValidity of TP order u/s 92CA (3) - period of limitation for making the assessment order as per Section 153(3) - HELD THAT:- The period of limitation for making the assessment order as per Section 153(3) was 31/03/2014, i.e., 24 months from the end of the assessment year. The extension of period of limitation made u/s. 92CA (3) and also as per proviso to Section 153(1) was upto 31/03/2015 i.e. after a period of 12 months. The proceedings for the assessment have been completed before 31/03/2015 and prior to the date of which limitation expires as per Section 92CA(3A) was 29/01/2015 as the date prior to the date of which limitation expires is 30/03/2015 and 60 days expires on 31/02/2015. Accordingly, in view of the Section 92CA(3), ld. TPO’s order which has been passed u/s. 92CA(3) on 29/12/2015 wherein in this case it has been passed on 30/01/2015. We quashed the final assessment order being barred by period of limitation u/s. 92CA (3). Once we have quashed the assessment order then, all the grounds raised by the Revenue becomes infructuous. Disallowance of interest of late payment of service tax u/s. 37(1) - Though this ground will become infructuous because once the assessment order itself has been quashed on the ground of limitation, then Section does not survive but in any case the interest of late payment of service tax is not penal in nature and same is compensatory. Now this issue is very well settled by the judgment in the case of Mahalaxmi Sugar Mills [1980 (4) TMI 1 - SUPREME COURT] and also by certain judgments of this Tribunal. Thus, on merits also, the disallowance is uncalled for.
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