Koch Business Solutions India Pvt. Ltd. Vs DCIT (ITAT Bangalore)
Time-Barred Assessment Order – ITAT Bangalore Strikes Down TP Addition
In the case of Koch Business Solutions India Pvt. Ltd., the Bangalore ITAT held that the final assessment order passed by the AO was barred by limitation under section 144C(13) and therefore liable to be quashed.
The Tribunal first admitted the additional legal ground raised by the assessee, emphasizing that purely legal issues going to the root of the matter can be raised at any stage, especially when all facts are already on record. Relying on settled principles (including NTPC Ltd.), it held that such grounds must be considered for correct determination of tax liability.
On merits of the legal issue, the Tribunal noted that the DRP directions were issued on 29.05.2024, and hence the AO was required to pass the final order within one month from the end of that month (i.e., by 30.06.2024). However, the AO passed the order only on 29.07.2024, clearly beyond the statutory time limit.
The Revenue’s contention that the Faceless AO had not received DRP directions in time was rejected in substance, as the statutory timeline is linked to the date of directions, not internal receipt issues.
