BMW India Pvt. Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that as per section 144C(13) of the Income Tax Act final assessment order is to be passed within one month from the end of the month in which directions issued by DRP is received by AO. Assessment order passed beyond the period prescribed u/s. 144C(13) is time barred and liable to be quashed.
Facts- A Final assessment Order came to be passed on 19/02/2016 u/s 143(3) r.w. Section 144C of the Income Tax Act, 1961, wherein the A.O. made addition/ adjustments on account of advertisement, marketing and promotion (AMP) expenditure, income of the Assessee has been enhanced by Rs. 1,71,32,019/- by holding that transaction pertaining to receipt of information technology support services does not satisfy the Arm’s Length Price and further disallowed an amount of Rs. 83,70,085/- being payment made to M/s Bhumi Consultants. Being aggrieved, the Assessee preferred an Appeal before the Tribunal.
The Tribunal vide order dated 25/01/2019, set aside the Final Assessment Order by deleting the adjustment made with regard to AMP Expenditure and remanded the adjustment of Rs. 1,71,32,019/- qua receipt of information technology support services and disallowance of Rs. 83,70,085/- qua deduction claimed for expenditure incurred for legal and professional services. Pursuant thereto, the TPO passed an order on 31/01/2021 u/s 92CA (3) r.w. Section 254 of the Act. A Rectification Order has also been passed by the TPO on 09/02/2021 by rectifying the said order dated 31/01/2021.
