Order Passed by TPO Even After Delay of Just One Day is Illegal and Barred by Limitation | ITAT
- Blog|News|Transfer Pricing|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 26 September, 2023
Latest from Taxmann
Case Details: Mahindra and Mahindra Ltd. v. Additional/Joint/Deputy/Assistant Commissioner of Income - [2023] 154 taxmann.com 194 (Mumbai-Trib.)
Judiciary and Counsel Details
-
- Prashant Maharishi, Accountant Member & Sandeep Singh Karhail, Judicial Member
- H.P. Mahajani, AR for the Appellant.
- Manoj Kumar, CIT DR for the Respondent.
Facts of the Case
Assessee company was manufacturing Automobiles, engine parts and several other activities. It entered into several international transactions, and reference was made to TPO to determine the international transactions’ arm’s length price.
Assessing Officer passed draft assessment order under section 143(3) read with section 144C(1), wherein the adjustment on account of the arm’s length price of the international transaction was also included.
Dispute Resolution Panel passed an order on 26-3-2021. Based on this, the final assessment order was passed on 29-4-2021. The assessee challenged the validity of the assessment order stating that assessment order passed by the Assessing Officer was beyond the time limit prescribed under section 153.
ITAT Held
The Mumbai Tribunal held that for the assessment year 2016-17, the due date for passing final assessment order was 31-12-2018. If valid reference to the TPO is made, a further 12 months is available in terms of section 153(4) provision.
According to section 92CA(3A) provisions, the TPO has to pass an order under section 92CA(3), 60 days before the date on which the limitation period under section 153 expires. Accordingly, the due date for passing the order of assessment was 31-12-2019; consequently, the due date for passing the order of the TPO was 31-10-2019.
In this case, the TPO passed the order under section 92CA(3) on 1-11-2019. Therefore, the order passed by the TPO was beyond the time limit prescribed under section 92CA(3A), i.e., delayed by one day. Therefore, the order of the TPO was illegal as it was barred by limitation.
List of Cases Reviewed
-
- Virtusa Consulting Services (P.) Ltd. v. Dispute Resulation Panel (DRP) [2022] 139 taxmann.com 361/446 ITR 454 (Mad.)
- Atos India (P.) Ltd. v. Dy. CIT [2023] 152 taxmann.com 217 (Mum. – Trib.) (para 9) followed
List of Cases Referred to
-
- Virtusa Consulting Services (P.) Ltd. v. Dispute Resulation Panel (DRP) [2022] 139 taxmann.com 361/446 ITR 454 (Mad.) (para 9)
- Atos India (P.) Ltd. v. Dy. CIT [2023] 152 taxmann.com 217 (Mum. – Trib.) (para 9).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
