ADP Private Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that final assessment order passed under section 143(3) of the Income Tax Act by AO beyond the time limit provided under Section 153(1) of the Income Tax Act is barred by limitation. Accordingly, appeal of assessee allowed.
Facts- This appeal filed by the assessee is against the final assessment order passed u/s. 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income-tax Act, 1961, dated 06.12.2024, in pursuance to the Directions dated 27.09.2024 of the learned Dispute Resolution Panel–1, Bengaluru, passed u/s. 144C(5) of the Act, pertaining to the assessment year 2021-22. It is mainly contested that the assessment proceedings which culminated in passing assessment order u/s. 143(3) r.w.s 144C(13) r.w.s 144B of the Act, dated 06 December 2024 is illegal and void in as much as it is barred by limitation as the order is passed beyond the time limit prescribed u/s. 153 of the Act and therefore the order, is liable to be set aside.
Conclusion- Hon’ble Madras High Court in the case of CIT Vs. Roca Bathroom Products Private Limited (2022) 445 ITR 537 (Madras) and the Hon’ble Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Limited Vs. ACIT, International Taxation (2023) 457 ITR 161 (Bombay), wherein it has been held that final assessment order passed by the A.O. beyond the time limit provided under Section 153(1) read with sub-section (4) of the Act is barred by limitation.
