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TMI Blog2025 (5) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, the Tribunal was right in not appreciating that the DRP order was only received by the Assessing Officer on 03.02.2022 as per the case history data and the completion of the proceedings by the AO on 22.03.2022 is within the time limit stipulated under Section 144C(13)? 4. A return of income was filed by the assessee in terms of the relevant provisions of the Income tax Act 1961 (Act), in time. The Assessing Officer made a reference to the Transfer Pricing Officer (TPO) and subsequent to the receipt of the TPO's report, an order of draft assessment came to be passed on 26.04.2021 making five additions. 5. As against the same, the assessee had filed objections before the Dispute Resolution Panel (DRP) on 27.05.2021. The Dispute Resolution Panel (DRP) had heard the matter in detail and had issued directions on 24.01.2022. The directions culminated in an order of final assessment dated 22.03.2022. 6. The question that arises for consideration is as to whether the date of receipt of the directions of the DRP by the Assessing Officer is '31.01.2022' or '03.02.2022'. This date would be critical to determine whether the final assessment has been completed within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AN: AABCM8375L) for AY 2017-18, the DRP directions were uploaded to ITBA portal on 31.01.2022 (ITBA screenshot enclosed). 2. Further, on the same day i.e 31.01.2022, the directions were also uploaded through common functionality in ITBA for NeFAC, Delhi. 3. Regarding successful delivery of directions to AO (in this case AO, NeFAC), it is brought to your goodself's knowledge that there is no functionality in ITBA through which this office can track the delivery of the directions uploaded through common functions module for NeFAC, Delhi. Yours faithfully Sd/- (S. P. Pream Kamel) Assistant Commissioner of Income tax (HQ) & Secretary Dispute Resolution Panel-2, Bengaluru.' 11. The Tribunal thus concludes that since the DRP's directions were 'uploaded through common functionality in ITBA for NeFAC, Delhi' on 31.1.2022 itself that would be taken to be the date of service of the order/date of receipt of the directions by the FAO and limitation as per Section 144C(13) would commence from that date onwards. The assessee's appeal was hence allowed, as against which, the present Tax Case (Appeal) has been filed by the Revenue. 12. This matter has come up for hearing on sev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mencement of limitation under Section 144C(13) of the Act. 14. Affidavit dated 04.12.2024 was filed by the Assessing Officer, which prompted us to pass the following order at the hearing on 05.12.2024: An affidavit has been filed by the Assessing Officer pursuant to our order dated 25.11.2024. There appears to be a change in the stand of the Department in so far as before the Tribunal, the stand was that the assessment order was sent by ITBA in electronic mode on 31.01.2022 (which we understand to mean uploaded in the ITBA on 31.01.2022). However, the Assessing Officer, at paragraph No.5 of the affidavit, says that the assessment order was uploaded by CIT (DRP-2), Bengaluru through functionality in ITBA on 03.02.2022 only. 2. A final opportunity is granted to the concerned Head of Information Technology Unit/Systems to file an affidavit along the lines required under order dated 25.11.2024 with a copy served in advance on the learned counsel for the assessee. 3. List on 19.12.2024. 15. Today, when the matter is taken up, an affidavit dated 17.12.2024 has been filed, where the Assessing Officer states that he has been authorized by the Director General of Income Tax (Systems ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear from the 'Case History/Notings' that the date of receipt of Dispute Resolution Panel's (Shortly as DRP) directions by the AO-Assessment Unit is on 03.02.2022 and no other date can be considered as the date of receipt, because it was the date on which the order was uploaded by CIT(DRP-2), Bengaluru through functionality in ITBA. The same has been viewed by Assessment Unit, NFAC on 03.02.2022. It is evidenced by Serial No.76 of Case History/Notings in Income Tax Business Application (ITBA). No other order has been uploaded by CIT(DRP-2), Bengaluru prior to 03.02.2022. The same also can be verified in Case History/Notings in ITBA. I respectfully submitted that, according to section 144C(13) of Income-tax Act, "the assessment is to be completed within one month from the end of the month in which the DRP issues directions". Therefore, the AO- Assessment Unit received Directions of the DRP only on 03.02.2022, hence one month from the end of the month of receipt of DRP directions would be 31.3.2022. (i.e.) date of limitation for completion of assessment is 31.3.2022. The assessment order in the instant case has been passed on 22.3.2022, which is well before the date of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical team, the DRP created the pendency by manually entering the details of the 144C order in the screen. The DRP Order u/s 144C (5) dated 24.01.2022 was uploaded by the DRP user in ITBA on 31-01-2022 with DIN : ITBA/DRP/M/144C(5)/2021-22/103924174(1). Further, since the DRP had created the DRP proceedings by manually entering the details of the case (and not by creating linkage with the assessment proceedings), the DRP order, when uploaded on 31.01.2022 in the DRP module, did not get automatically reflected in the Case History/Noting of the assessment proceedings. 2) Uploading of the DRP order using the functionality of DIN/PAN-AY: There is functionality available in ITBA("Uploading of document based on DIN/PAN-AY"). Documents uploaded by any ITBA user, using this functionality are shared in the Case History/ Notings of the selected proceedings, pending with JAO or FAO as the case may be. As per information available in the ITBA System, a document named "the ramco cements AY 2017-18_202201311317.pdf" with the following description was uploaded by CIT (DRP-2) Bangalore - 3 on 03.02.2022 using the said functionality. A copy of the said document named "the ramco cements AY 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by DRPs to other ITBA users - Reg. This is to inform that on passing order by the DRP in ITBA(DRP Module) [either through online system mode or through Manual to system mode], the DRP Directions/Order would be reflected automatically in the pending assessment work-item either with FAO or JAO - provided that at the time of initiating DRP proceedings, in ITBA DRP Module, DRP users had selected the Draft order u/s 144C in the system itself, rather than entering the details on the ITBA screen on its own. If, at the time of initiating DRP proceedings, the DRP user had not selected the Draft Order u/s 144C in the system, and had rather entered the details manually on the ITBA screen on its own, then the DRP Order will not reflect inside the pending / Assessment Proceedings work-item. In either of the above scenarios, however, the DRP order would be visible in the '360 Degree' screen to the FAO if any assessment work item is pending with the FAO related to that PAN. The JAOs can view the DRP order in '360 Degree' screen for all the PANs existing in their jurisdiction. Besides, JAO can also get the details from DRP by offline letter/communication. FAOs can also call for any details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le proposition. 32. The starting point of limitation has thus to be reckoned from the earliest instance when the directions of the DRP would be visible to the officer and cannot be taken to fluctuate from one methodology to another depending on the option exercised by the user. 33. Mr. Narayanasamy has circulated a screen shot of the 360 degree view, that presents as follows: Since the fields in the above image are not clear, the screen shot as provided by the Department is inserted at this point as page 18. 34. Our understanding of the 360 degree view page is that on entering the details of the assessee including the PAN number and the assessment year, the form would auto populate in regard to all details relating to that assessee including present status of proceedings and all orders, letters and notices. 35. In this, we are supported by the concluding portion of the advisory that states that the DRP order would be visible in the 360 degree screen to the FAO for his ready access. Thus, all that is required to gain complete and up-to- date access to all relevant data in regard to an assessee's assessment would available on the 360 degree screen. 36. Learned Standing Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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