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TMI Blog2024 (9) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... and 2011-12; framed u/s 144C(13)/147/143(3) of the Income Tax Act, 1961 ("the Act") as per the directions of the Dispute Resolution Panel -2, New Delhi, vide order dt. 29/11/2018. 2. Before adverting to the main grounds of appeal we will first take up the additional ground raised by the assessee and the same reads as follows:- "3.0. Re.: Validity of the re-assessment order passed beyond the time limit stipulated under section 144C(13) r.w.s. 143(3) of the Act The Learned Assessing Officer has erred in not passing the final assessment order within the time limit specified." 3. In support of this additional ground, the assessee has filed written submissions, which reads as under:- "Brief Note on the issues involved in these appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nything to the contrary contained 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. 6. The aforesaid Directions issued by the DRP u/s. 144C(5) of the Act, were received by the Assessing Officer on 03 October 2018. This fact is clearly evident from the letter dated 11 April 2019 received by the Appellant from the Assessing Officer, which is on record. 7. Considering the fact that the Directions of the DRP was received by the Assessing Officer on 03 October 2018, the time limit prescribed u/s. 144C(13) to pass the Final Assessment Order ended on 30 November 2018 as explained hereunder: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n its Directions dated 25 September 2018 and hence the Final Assessment Order dated 06 December 2018 can be considered to be within the time limit if one were to consider the said rectified DRP Directions. 12. Here, it is respectfully submitted that, the time limit u/s. 144C(13) of the Act, for passing the Final Assessment Order is to be reckoned from the date on which the Directions of the DRP passed u/s. 144C(5) of the Act are received by the Assessing Officer. 13. In this case, admittedly the said Directions issued by the DRP u/s. 144C (5) of the Act were passed on 25 September 2018 and which were received by the Assessing Officer on 03 October 2018 and hence the time limit for passing the Final Assessment Order should be counted f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f framing the assessment was 30/11/2018 but the assessment order has been framed on 06/12/2018, for both the Assessment Years in question and on this ground of limitation, both the assessment orders, deserve to be quashed. On the other hand, the ld. D/R, submitted that the directions of the ld. DRP were sent to the ld. Assessing Officer as well as the ld. Transfer Pricing Officer (in short 'TPO') and the limitation period for the Assessing Officer starts from the date when he receives the information from the TPO of having given effect to the DRP's order and if the same is considered then the order is not barred by limitation. 5. We have heard rival contentions and perused the material placed before us. We notice that the assessee is a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DRP is prescribed u/s 144C(13) of the Act which reads as under:- "(13) Upon receipt of the directions issued under sub-section (5), the Assessing Officer shall, in conformity with the directions, complete, notwithstanding anything to the contrary contained 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." 6. Now, the contention of the ld. D/R is that after the directions of the ld. DRP, firstly the ld. TPO had to give effect to the adjustments made by him in the original TPO order and thereafter when the necessary effect is given, the same has to be communicated to the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 144C(13) of the Act, the said order was set aside for being barred by limitation. Similar view was also taken by the Co-ordinate Bench of the ITAT Delhi in the case of Dentsply India (P.) Ltd. v/s. ITO. 7. Respectfully following the decision of the Co-ordinate Benches referred supra and also considering the provisions of Section 144C(5) and (13) of the Act, we find that the directions of the ld. DRP u/s 144C(5) were issued on 25/09/2018 and the same were communicated to the Assessing Officer on 03/10/2018 and the time limit to give effect to the order of the ld. DRP was expiring on 30/11/2018 but since the Assessing Officer failed to adhere to the said provisions and gave effect to the order of the ld. DRP on 06/12/2018, the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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