ITAT Quashes Assessment as Final Order Was Passed Beyond Section 144C Limitation

By CA Sandeep Kanoi Income Tax Judiciary June 27, 2026

TaxGuru Citation: 2026 taxguru.in 7576
Case Name: Adidas India Marketing Private Limited Vs ACIT (ITAT Delhi)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2018-19
Courts: All ITAT, ITAT Delhi

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Adidas India Marketing Private Limited Vs ACIT (ITAT Delhi)

The Income Tax Appellate Tribunal (ITAT), Delhi, considered the assessee’s appeal against the final assessment order dated 28.02.2023 passed under Sections 143(3) and 144C(13) for Assessment Year 2018-19. The assessee raised several grounds relating to transfer pricing adjustments, royalty, buying commission, corporate tax issues, jurisdiction, and limitation. Since the challenge to the validity of the assessment on jurisdiction and limitation was a legal issue, the Tribunal decided those grounds first.

Assessee’s Contentions

The assessee contended that:

The final assessment order was void, without jurisdiction and barred by limitation.
The draft assessment order had been passed by the National Faceless Assessment Centre (NFAC) on 06.09.2021, and objections were filed before the Dispute Resolution Panel (DRP) on 05.10.2021.
The DRP issued directions under Section 144C(5) on 03.06.2022.
The Transfer Pricing Officer (TPO) passed the effect order on 14.07.2022 and communicated it to the jurisdictional Assessing Officer.
According to the assessee, the final assessment order ought to have been passed within the time prescribed under Section 144C(13), whereas it was actually passed only on 28.02.2023, making it time-barred.
The assessee also argued that the draft order was issued under the faceless assessment scheme, whereas the final order was passed by the jurisdictional Assessing Officer, contrary to Section 144B.