Repal Green Power Private Limited Vs DCIT (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT), Hyderabad, decided two appeals filed by the assessee for Assessment Years (AYs) 2017-18 and 2018-19 against assessment orders passed under Sections 143(3) read with 144C(13) of the Income-tax Act. The appeals involved various transfer pricing, depreciation, investment allowance and other issues. The assessee also raised an additional legal ground contending that the assessment orders were barred by limitation under Section 153 of the Act. The Tribunal admitted the additional ground, holding that it was purely a legal issue requiring no further investigation of facts and could be decided on the basis of the existing record.
For AY 2017-18, the assessee submitted that the normal time limit for completing the assessment expired on 31.12.2019. Since the matter involved a reference under Section 92CA, the limitation stood extended by 12 months to 31.12.2020. The assessee further contended that, after considering the extension granted under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), the final date for passing the assessment order was 30.09.2021. As the Assessing Officer passed the final assessment order only on 26.02.2022, the assessee argued that it was barred by limitation. The assessee relied on decisions of the Madras High Court in Roca Bathroom Products (P.) Ltd. and the Bombay High Court in Shelf Drilling Ron Tappmeyer Ltd. to contend that the limitation prescribed under Section 153 prevails over the timeline under Section 144C.
