Syniverse Technologies Services India Pvt. Ltd. Vs ACIT (ITAT Delhi)
Assessment Order Ignoring DRP Directions Quashed; Corrigendum After Limitation Held Invalid: ITAT Delhi
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal against the assessment order dated 30.06.2022 passed under Sections 143(3) read with 144C(13) of the Income-tax Act, 1961 for Assessment Year 2018-19. The assessment had been framed pursuant to the directions of the Dispute Resolution Panel (DRP).
During the hearing, the assessee submitted that the DRP’s intimation under Section 144C(5) was dated 05.05.2022, and the Transfer Pricing Officer (TPO) had passed an order giving effect to the DRP’s directions on 17.06.2022. However, the Assessing Officer (AO), while passing the final assessment order on 30.06.2022, did not incorporate the DRP’s directions. The assessee contended that the contents of the draft assessment order and the final assessment order were identical, demonstrating that the DRP’s directions had not been implemented. It was further argued that the AO, after the limitation period ended on 30.06.2022, issued a corrigendum on 27.07.2022 under Section 144C(13), which was beyond jurisdiction and incapable of curing the defect in the final assessment order. The assessee relied upon the decisions of the Bombay High Court in Pr. CIT vs. Lionbridge Technologies Pvt. Ltd. and the Mumbai Bench of the ITAT in M/s. I.A.R. System Aktiebolag Deloitte vs. DCIT.
