Emaar India Limited Vs ACIT (ITAT Delhi)
Final Assessment Order Time-Barred: ITAT Delhi Quashes Order in Emaar India Ltd.—Sections 144C & 153 Must Operate Together
The Delhi ‘H’ Bench of the Income Tax Appellate Tribunal, Delhi Bench allowed the assessee’s appeal for AY 2020-21 and quashed the final assessment order passed under section 143(3) read with sections 144C(13) and 144B as barred by limitation.
The assessee demonstrated, through an undisputed date chart, that the statutory outer time limit for completion of assessment under section 153(1) read with section 153(4) expired on 30.09.2023, whereas the final assessment order was passed on 30.07.2024. The Revenue contended that section 144C constitutes a self-contained code and sought deferral of the matter in view of the pending proceedings before the Supreme Court in Shelf Drilling Ron Tappmeyer Ltd.
Rejecting the Revenue’s objection, the Tribunal followed the binding judgment of the Madras High Court in Roca Bathroom Products Pvt. Ltd. and reiterated that sections 144C and 153 are mutually inclusive and inter-dependent. The non-obstante clause in section 144C(13) does not override or exclude the limitation prescribed under section 153. The entire DRP framework—draft assessment, DRP directions and final order—must be completed within the outer time limit applicable to the final assessment order.
Applying this principle to the admitted chronology, the ITAT held that the impugned final assessment order was void ab initio and liable to be quashed. However, considering that the issue of limitation is pending before the Supreme Court, the Tribunal granted liberty to both parties to seek revival of the appeal for adjudication on merits depending on the final outcome of the Supreme Court decision. The appeal was thus allowed on the limited legal ground of limitation.
FULL TEXT OF THE ORDER OF ITAT DELHI
