DSM Shared Services India Private Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad quashes TP assessment as time-barred; DRP route cannot override section 153
Hyderabad ITAT quashed the final assessment order passed u/s 143(3) r.w.s. 144C(13) & 144B as being barred by limitation.
The Assessee challenged the final assessment order dated 23-10-2024 on the legal ground that it exceeded the outer time-limit prescribed u/s 153(1) r.w.s. 153(4). The Tribunal noted that for AY 2021-22, the normal limitation of 9 months from the end of the AY was applicable, which stood extended by 12 months due to reference to the TPO u/s 92CA. Accordingly, the outer time-limit expired on 31-12-2023, whereas the impugned final order was passed on 23-10-2024.
Rejecting the Revenue’s contention that section 144C is a complete code overriding section 153, the ITAT held that sections 144C and 153 are mutually inclusive, and the non-obstante clause in section 144C(13) only restricts the AO to pass the final order within one month from receipt of DRP directions—it does not extend or override the statutory limitation under section 153. The Tribunal relied heavily on the judgments of the Madras High Court in CIT v. Roca Bathroom Products (P.) Ltd. (445 ITR 537) and the Bombay High Court in Shelf Drilling Ron Tappmeyer Ltd. v. ACIT (457 ITR 161), as well as its own earlier decision in Aveva Solutions India LLP.
While allowing the appeal and quashing the assessment as time-barred, the Tribunal clarified that since the issue is pending before a Larger Bench of the Supreme Court, liberty is kept open to the parties to seek revival of the appeal on merits if the Apex Court later takes a contrary view
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
