CBRE South Asia Pvt. Ltd Vs Additional, Joint, Deputy, ACIT (ITAT Delhi)
Once Limitation Expires, TPO Route Can’t Revive It:- Belated TPO Reference Dooms Assessment: Delhi ITAT Quashes AY 2019-20 Order as Time-Barre
Delhi ITAT ‘B’ Bench in CBRE South Asia Pvt Ltd vs ACIT, NFAC (ITA No.2282/Del/2024, AY 2019-20, order dated 23-12-2025) quashed the assessment order dated 28-03-2022 as barred by limitation, holding that a reference to TPO made after expiry of the statutory time limit u/s 153 is void, and cannot extend limitation.
Assessee had filed its return for AY 2019-20 and the normal time limit for completion of assessment expired on 31-03-2021, which stood extended only up to 30-09-2021 under TOLA. However, AO made a reference to the TPO on 28-01-2022, i.e. after the assessment proceedings had already become time-barred. The assessment was thereafter completed u/s 143(3) r.w.s. 144B on 28-03-2022, relying on the TPO proceedings.
Before ITAT, assessee raised an additional legal ground contending that TP reference must be made during the subsistence of valid assessment proceedings, and a belated reference cannot resurrect limitation. Tribunal accepted the plea, relying on the Madras High Court decision in Virtusa Consulting Services (P) Ltd, holding that if the reference itself is invalid, all consequential proceedings automatically fail.
ITAT rejected Revenue’s argument that an earlier internal approval existed, noting that the operative reference and TPO proceedings were admittedly after 30-09-2021. Since the assessment had already become time-barred, section 153(4) could not be invoked to extend limitation.
Accordingly, ITAT allowed the additional grounds, quashed the assessment as void ab initio, and left all other grounds open.
Key takeaway: TP reference is not a magic wand—once the limitation for assessment expires, any subsequent reference to TPO is a nullity, and the entire assessment collapses on jurisdictional grounds
FULL TEXT OF THE ORDER OF ITAT DELHI
