TMEIC Industrial Systems India Private Limited Vs DCIT (ITAT Hyderabad)
Hyderabad ITAT quashed the final assessment order passed u/s 143(3) r.w.s. 144C(13) & 144B as being barred by limitation.
The Tribunal first admitted the additional legal grounds raised by the Assessee, holding that questions of law arising from facts already on record can be raised at any stage, relying on NTPC Ltd. v. CIT (229 ITR 383). On merits, it held that the outer time-limit prescribed u/s 153(1) r.w.s. 153(4) prevails even in cases governed by the DRP mechanism u/s 144C.
For AY 2020-21, the normal limitation expired on 30-09-2022, which stood extended only up to 30-09-2023 due to TP reference u/s 92CA. Since the final assessment order was passed on 25-07-2024, it was clearly beyond limitation. The Tribunal rejected Revenue’s contention that section 144C is a complete code overriding section 153, following the binding precedents of the Madras High Court in CIT v. Roca Bathroom Products Pvt. Ltd. and the Bombay High Court in Shelf Drilling Ron Tappmeyer Ltd. v. ACIT.
The plea of extension of limitation based on the Supreme Court’s COVID suo-motu orders was also rejected, holding that such extensions apply only to judicial/quasi-judicial proceedings like appeals and not to original assessment orders. Consequently, the final assessment order was quashed as time-barred, without going into TP issues on merits
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
