Case Law Details
Conferencecall – Services India Pvt. Ltd. Vs DCIT (ITAT Chennai)
The case of Conferencecall – Services India Pvt. Ltd. vs. DCIT (ITAT Chennai) revolves around an appeal by the assessee against the order of the Assessing Officer (AO) under various sections of the Income Tax Act, 1961 for the Assessment Year (AY) 2013-14. The primary contention of the appellant revolves around the timeliness of the final assessment order passed by the AO.
The appellant argued that the final assessment order was invalid and time-barred as it was passed after the expiration of the period stipulated under Section 144C(13) of the Income Tax Act. This section mandates that the AO must complete the final assessment within one month from the end of the month in which directions from the Dispute Resolution Panel (DRP) are received. The appellant contended that the AO received the DRP’s directions in September 2017, but the final order was passed in November 2017, well beyond the prescribed time limit.
The respondent, on the other hand, argued that the delay in passing the final assessment order was due to the appellant’s failure to participate in the verification process as directed by the AO. However, the appellant maintained that any verification should have been conducted within the prescribed timeline and that the DRP’s directions were binding on the AO, precluding any further enquiry or delay.
In analyzing the case, the tribunal referred to relevant statutory provisions, particularly Section 144C of the Income Tax Act, which outlines the procedure for dispute resolution involving transfer pricing issues. The tribunal noted that the AO received the DRP’s directions in September 2017, and according to Section 144C(13), the final assessment should have been completed within one month from the end of that month, i.e., by October 31, 2017. However, the final order was passed on November 21, 2017, exceeding the prescribed time limit.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
