Rohde And Schwarz India Private Limited Vs Assessment Unit (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal examined an appeal challenging the validity of a final assessment order passed for Assessment Year 2020–21 under sections 143(3) read with 144C(13) and 144B of the Income Tax Act, 1961. The principal ground raised was that the final assessment order dated 27 July 2024 was barred by limitation, having been passed beyond the statutory time limit prescribed under section 153(1) read with section 153(4) of the Act. The assessee relied on the judgment of the Madras High Court in Roca Bathroom Products Pvt. Ltd., which held that sections 144C and 153 are mutually inclusive and that the limitation under section 153 continues to apply despite the non-obstante clause in section 144C(13).
The Revenue opposed adjudication on limitation, contending that the issue was pending before the Supreme Court in Shelf Drilling Ron Tappmeyer Ltd. and that the Tribunal should defer the matter. The Tribunal rejected this objection, following its own earlier decision in Teva Pharmaceutical & Chemical Industries India Pvt. Ltd., where a similar request for deferral was declined.
On facts, the Tribunal noted that the outer statutory time limit for completion of assessment for AY 2020–21 expired on 30 September 2023, whereas the final assessment order was passed on 27 July 2024. Relying extensively on the reasoning in Roca Bathroom Products, the Tribunal reiterated that the assessment process, including proceedings before the Dispute Resolution Panel, is a continuation of assessment proceedings and must be completed within the time limits prescribed under section 153. It emphasized that the non-obstante clause in section 144C(13) does not override section 153 entirely but operates only to ensure prompt passing of the final order once DRP directions are issued.
