ACIT Vs Rolls Royce India Private Limited (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed a Miscellaneous Application (MA) filed by the Revenue seeking recall of the Tribunal’s earlier order dated 04.07.2025 in ITA No. 252/Del/2022, which had quashed the final assessment order dated 18.11.2021 as being barred by limitation under Section 144C(13) of the Income-tax Act, 1961.
In its earlier order, the Tribunal had observed that Section 144C(13) mandates that once directions are issued by the Dispute Resolution Panel (DRP) under Section 144C(5), the Assessing Officer (AO) must complete the assessment in conformity with those directions, without granting any further opportunity of hearing to the assessee, within one month from the end of the month in which the directions are received. The Tribunal noted that the DRP had issued its directions on 21.09.2021 and, therefore, the AO was required to pass the final assessment order on or before 31.10.2021. However, the assessment order was passed only on 18.11.2021. Relying on judicial precedents, the Tribunal had held that an assessment completed beyond the prescribed limitation period becomes null and void and loses its legal validity. Consequently, it quashed the assessment order as void ab initio and, having allowed the limitation ground, did not adjudicate the remaining grounds of appeal.
