TMI Blog2024 (3) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... icer received the directions only on 17.03.2023, for purposes of sub-section (13) of Section 144C, the date of receipt should be reckoned as the date of receipt by the National Faceless Assessment Centre on 17.06.2022. The internal arrangement by which the assessment proceedings relating to the petitioner were purportedly transferred so as to ensure that the proceedings are not barred by limitation is not material for this purpose. Indeed, as contended by petitioner, the communication dated 12.04.2022 from the PCCIT of the National Faceless Assessment Centre seeking approval for transfer so as to complete assessment within the period of limitation underscores the fact that the income tax authorities were mindful of the fact that assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the arm's length price (ALP) with respect to all international transactions reported by the assessee. The TPO issued the transfer pricing order on 28.07.2021 and proposed a downward adjustment of Rs. 2,76,07,981/- with regard to ALP of international transactions. Thereafter, the second respondent, who is the National Faceless Assessment Centre, issued a draft assessment order dated 21.09.2021 in conformity with the adjustment proposed by the TPO. The petitioner filed objections thereto before the Dispute Resolution Panel (the DRP) under Section 144C(2) of the Income Tax Act. The DRP confirmed the addition made in the draft assessment order and issued directions on 16.06.2022 under Section 144C(5) of the Income Tax Act. Such dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision Bench of this Court held that irrespective of whether the DRP issues directions within nine months, the assessing officer should pass orders within one month in line with the scheme of the Income Tax Act. 3. The second ground of challenge was that the jurisdictional assessing officer did not have the authority to issue the assessment order. In support of this contention, learned counsel referred to clause (xx) of subsection (1) of Section 144B. He pointed out that the said clause provides that the assessment unit shall send the draft order prepared under sub-clause (a) of clause (xvi) or under clause (xix) to the National Faceless Assessment Centre. He also submitted, in this connection, that the transfer order is not available. By r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to the contrary. As regards the contention relating to limitation, he relied on the language of sub-section (13) of Section 144C to contend that the period of limitation would run from the date of receipt of directions by the jurisdictional assessing officer. By relying on the counter of Mr.S.R.Nedumaran, Deputy Commissioner of Income Tax, he submits that the jurisdictional assessing officer received the directions only on 17.03.2023. He further submits that there was no communication by post or through the ITBA portal to the jurisdictional assessing officer until 17.03.2023. In support of this contention, he referred to and relied upon the order sheet pertaining to the assessment proceedings. He pointed out that the said order sheet r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in section 153 [or section 153B], the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month in which such direction is received. From the above provision, it is evident that the specified time limit is one month from the end of the month in which directions are received. It is also clear that the time limit should be computed from the date of receipt of directions issued under sub-section(5) thereof. Sub-section (5) of Section 144C deals with the issuance of directions by the DRP. The admitted position is that the DRP issued directions on 16.06.2022 and this fact is borne out by examining the proceedings of the DRP, which is contained at page Nos.122 to 130 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng approval for transfer so as to complete assessment within the period of limitation underscores the fact that the income tax authorities were mindful of the fact that assessment would be barred by limitation unless such assessment is proceeded with and completed expeditiously. 8. All that remains is to examine whether the assessment proceedings would be barred by limitation if computed from the end of June 2022. If so computed, the period of one month expired on 31.07.2022, whereas the assessment order came to be issued on 25.03.2023. Hence, the assessment order was issued beyond the time limit specified in sub-section (13) of Section 144C. By taking into account not only statutory prescription but also the interpretation thereof by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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