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2024 (3) TMI 720 - AT - Income TaxTransfer Pricing Adjustments - Validity of the order passed u/s. 92CA(3) - period of limitation - HELD THAT:- TPO can pass an order u/s 92CA of the Act at any time before 60 days prior to the date on which period of limitation referred to u/s 153 expires. Thus, 60 days have to be counted prior to the date of last date of limitation u/s 153. Thus, the date for passing of ld. TPO’s order was on or before 31/10/3019, because the completion of assessment u/s. 153(1), i.e., 21 months from the end of the assessment year plus 12 months extension considering TP reference has been made was 31/12/2019. Thus, the final assessment order is clearly barred by limitation in view of the decision of the Hon’ble Madras High Court in the case of Pfizer Healthcare India (P) Ltd. [2022 (4) TMI 808 - MADRAS HIGH COURT] Accordingly, we hold that the ld. TPO order is invalid and accordingly, is quashed. If there is no TPO order consequently, the entire transfer pricing adjustment proposed by the ld. TPO and the international transaction becomes non-est which is also liable to be quashed. Whether once the ld. TPO order is held to be nullity of or barred by limitation then could AO have passed the draft order treating it to be as 'eligible assessee? - In the instant case, it will be apparent that there is no transfer pricing variation arising as a consequence of the order of the ld. TPO once the said transfer pricing order is held to be time-barred, non-est and void ab-inito from the very date of its existence and inception. The entire premise to adopt the special procedure under section 144C of the Act and treat the assessee an eligible assessee rests on the fact that the order passed under section 92CA(3) of the Act has resulted in transfer pricing variations prejudicial to the interest of the assessee. Accordingly, once the assessee becomes an ineligible assessee, the very foundation for proceeding to pass the draft assessment order does not survive, meaning thereby, that the draft assessment order passed in the instant case becomes legally invalid and hence, al consequential proceedings on the basis of the said order fail In the instant case, a reference was made by the Ld. AO to TPO as per the provisions of section 92CA(1) of the Act an accordingly the timelines prescribed u/s 153 of the Act. Accordingly, the time limit to complete the assessment u/s. 143(3) expired on 31/12/2019 and accordingly, the whole assessment order is void ab initio being barred by limitation. Appeal of the assessee
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