Case Law Details
Mondelez India Foods Private Limited Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that any order passed by the TPO beyond a period of limitation as prescribed under the provisions of section 92CA(3A) of the Income Tax Act is bad in law.
Facts-
Assessee has submitted that as per section 92CA(3A) of the Act, where reference is made to the TPO, the TPO is required to pass order under section 92CA(3) of the Act at any time before sixty days prior to the date on which the period of limitation referred to in section 153 for making the assessment order expires. Provisions of section 153 of the Act as applicable to the assessment year 2010-11 states that, where reference is made to TPO under section 92CA(1) of the Act, the limitation for passing assessment order shall be three years from the end of assessment year in which the income was first assessable.
In the present case, the due date for completion of assessment in accordance with third proviso to section 153(1) of the Act was 31/03/2014. The time limit for passing the order under section 92CA(3A) of the Act is before sixty days prior to the date on which limitation for passing assessment order expires. In calculating 60 days – the day on which limitation to pass assessment order expires i.e. 31/03/2014 has to be excluded. Calculating 60 days backwards – 30 days of March, 28 days of February and 2 days of January. Thus, the last date for passing the order under section 92CA(3) of the Act was 29/01/2014. The TPO passed the order under section 92CA(3) of the Act on 30/01/2014. Thus, the order passed under section 92CA(3) of the Act is time barred by one day.
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