Microsoft Corporation (India) P. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that on the date of receipt of DRP direction, the due date in terms of section 144C(13) of the Income Tax Act would start reckoning from that date. Hence, the final assessment order passed by the DCIT after one month from end of the month in which direction of DRP is received is barred by limitation.
Facts- Assessee has preferred the present appeal mainly assailing validity of final assessment order dated 30.06.2022 on the ground of limitation. It is contested that the Dispute Resolution Panel (DRP) issued directions u/s. 144C(5) of the Act on 23.03.2022, the Assessing Officer (AO) passed final assessment order on 23.06.2022. As per the provisions of Section 144C(13) of the Act, the AO is required to pass final assessment order within one month from the end of month in which directions of the DRP are received.
Conclusion- In this case, the DRP directions are not automatically reflected in the case history noting of pending assessment work of the Assessing Officer i.e., FAO or JAO. Admittedly, the DRP entered the details manually as per records. Hence, the Assessing Officer was not having the facility to view directions of DRP merely upon uploading of the same on ITBA portal on 1st April, 2022. A perusal of the ITBA technical team report reveals that DRP directions were visible to the Assessment Unit when it was manually entered into the system by DC/ACIT(NESE)2(1)(1), Delhi dated 13th April, 2022. It means that the DRP order/directions were available or is visible to the Assessment Unit on 13th April, 2022. It means that the receipt of DRP directions to the Assessment Unit was on 13th April, 2022.
