Triumph Motorcycles (India) Pvt. Ltd. Vs Additional/Joint/Deputy/ACIT (ITAT Delhi)
ITAT Delhi: Final Assessment u/s 143(3) r.w.s. 144C Barred by Limitation – Section 153 Applies Despite Non-Obstante Clause; Assessment Quashed
The Delhi Bench of the ITAT allowed the assessee’s appeal in Triumph Motorcycles (India) Pvt. Ltd. by holding that the final assessment order dated 26.02.2022 passed under section 143(3) read with sections 144C(13) and 144B for AY 2017-18 was barred by limitation and void ab initio. Relying primarily on the Madras High Court decision in Roca Bathroom Products (P) Ltd., the Tribunal held that sections 144C and 153 are mutually inclusive and inter-dependent, and the non-obstante clause in section 144C(13) does not exclude the outer time limit prescribed under section 153.
The Tribunal rejected the Revenue’s plea to defer adjudication on the ground that the issue is pending before the Supreme Court in Shelf Drilling Ron Tappmeyer Ltd., observing that there is no stay on Roca Bathroom Products and that, in the absence of any contrary High Court judgment, the same constitutes a binding precedent. It was further noted that the Act itself provides a statutory mechanism under section 158AB for the Revenue to deal with identical questions of law pending before higher courts, rather than seeking adjournment of proceedings.
On facts, the Tribunal accepted the assessee’s date-chart showing that the outer limitation under section 153(1) read with section 153(4) had expired on 31.12.2020, whereas the final assessment order was passed on 26.02.2022. Accordingly, the impugned assessment was quashed as time-barred. However, considering that the limitation issue is pending final resolution before a Larger Bench of the Supreme Court, the Tribunal granted liberty to both parties to seek revival of the appeal for adjudication of other issues on merits, if required by the eventual decision of the Supreme Court.
FULL TEXT OF THE ORDER OF ITAT DELHI
