Microsft Corporation India Pvt Ltd Vs DCIT (ITAT Delhi)
Assessment Set Aside as Time-Barred Due to Delay Beyond Section 144C(13) Deadline; ITAT Cancels Assessment Because Final Order Was Passed After ITBA Upload-Based Limitation; Delhi ITAT Holds Physical Receipt of DRP Order Irrelevant for Limitation Calculation; Assessment Quashed Because AO Failed to Pass Final Order Within One-Month Statutory Period.
The Income Tax Appellate Tribunal (ITAT) Delhi set aside the assessment order passed against Microsoft Corporation India Pvt. Ltd. after holding that the final assessment was barred by limitation under Section 144C(13) of the Income Tax Act.
The assessee challenged the assessment order dated 06.08.2024 passed under Sections 143(3), 144C(13), and 144B of the Act pursuant to the directions issued by the Dispute Resolution Panel (DRP). The assessee filed additional grounds contending that the assessment order was time-barred under Sections 153 and 144C(13). The Tribunal admitted the additional grounds as they involved legal issues arising from facts already available on record.
During the hearing, the assessee did not press the ground relating to Section 153. However, with respect to limitation under Section 144C(13), the assessee argued that the DRP directions were issued and uploaded on the ITBA portal on 28.06.2024, and the final assessment order passed on 06.08.2024 exceeded the statutory period of one month from the end of the month in which the DRP directions were issued. The assessee relied on undisputed dates including the DRP directions dated 28.06.2024, DIN generation and upload on the same date, and the final assessment order dated 06.08.2024.
