Internal Arrangement W/r/t Transfer Of Assessment Proceedings Not Material For Ascertaining Limitation: Madras High Court
Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.A Single Judge Bench of Justice Senthilkumar Ramamoorthy observed that “the directions of the DRP were forwarded to the assessing officer, i.e....
Finding that the period of one month expired on July 31, 2022, whereas the assessment order came to be issued on Mar 25, 2023, the Madras High Court Held the assessment order issued beyond time-limit specified in Sec.144C(13) as unsustainable.
A Single Judge Bench of Justice Senthilkumar Ramamoorthy observed that “the directions of the DRP were forwarded to the assessing officer, i.e. National Faceless Assessment Centre, Delhi by uploading the same on 17.06.2022. Although learned senior standing counsel contends that the jurisdictional assessing officer received the directions only on 17.03.2023, for purposes of sub-section (13) of Section 144C, the date of receipt should be reckoned as the date of receipt by the National Faceless Assessment Centre on 17.06.2022”. (Para 7)
The Bench noted that DRP issued directions u/s 144C(5) on 16.06.2022, and as per petitioner's submission, DRP's directions were uploaded on ITBA portal on 17.06.2022 and served on TPO on 27.06.2022.
The Bench further noted that final assessment order was issued on 25.03.2023, and as per assessee's submission, limitation for passing the same expired on 31.07.2022.
The Bench observed that internal arrangement by which the assessment proceedings relating to the petitioner were purportedly transferred so as to ensure that the proceedings are not barred by limitation is not material for this purpose.
The Bench underscores the fact that income tax authorities were mindful of the fact that assessment would be barred by limitation unless such assessment is proceeded with and completed expeditiously.
Therefore, referring to Coordinate bench ruling in Roca Bathroom Products Private Limited and Delhi HC ruling in Louis Dreyfus Company India Private Limited, the ITAT held that assessment proceedings are barred by limitation.
Counsel for Petitioner/ Assessee: R. Sandeep Bagmar
Counsel for Respondent/ Revenue: R.S. Balaji & S. Premalatha
Case Title: Taeyang Metal India Private Limited vs DCIT
Citation: 2024 LiveLaw (Mad) 107
Case Number: WP No 12159/2023
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