Extended time limit not available as assessee ceases to be an ‘eligible assessee’

Johnson & Johnson Private Ltd Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that as the assessee ceases to be an ‘eligible assessee’ under provisions of section 144C of the Income Tax Act, extended time limit for assessment is not available to AO. Accordingly, order of TPO is barred by limitation.

Facts- Assessee Company is subsidiary of M/s Johnson & Johnson, USA, engaged in the business of manufacturing and marketing of various consumer care, healthcare and diagnostic products. It has five different divisions in India.

The learned Transfer Pricing Officer passed order under Section 92CA (3) of the Act on 30th January, 2015, proposing an adjustment of ₹320,13,82,586/-. The learned Dispute Resolution Panel restricted the transfer pricing adjustment at ₹89,91,09,379/-. Being aggrieved, the present appeal is filed.

It is also the claim of the assessee that as the order of the Transfer Pricing Officer is invalid, the assessee cannot be said to be an ‘eligible assessee’ in terms of explanation to section 144C of the Act and hence, the final assessment order passed on 26 February 2016 is barred by limitation.

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