Benteler Automotive India Pvt. Ltd. Vs Union of India (Bombay High Court)
Bombay HC Holds TP Assessment Time-Barred for Failure to Pass Final Order Within 30 Days of DRP Directions; Quashes Proceedings
The petitioner is part of a foreign MNC. It filed return of income for AY 2016-2017. The case was transferred to the transfer pricing officer. A draft assessment order dated 28.11.2019 came to be passed. The petitioner appeared before the DRP: It passed an order dated 22.02.2021 in terms of Section 144C(5) of the Act, directing adjustment and addition of over Rs7.93 crores. directions were issued by the DRP. The assessing officer did not pass order within time provided for final assessment. Hence; petition was filed claiming that proceedings are time barred.
The Hon’ble Bombay High Court held that assessment was time barred and allowed the writ petition. It held: (i) section 143C(13) of the Income Tax Act requires final assessment order to be passed within 30 days of the month in which DRP passes order; admittedly; it was not done in the present case; (ii) follows its earlier decision in Shell India case; (iii) holds that the proceedings are time barred; hence, no order can be passed today; (iv) allows petitioner to withdraw the protective appeal filed before CIT(A).
