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2024 (2) TMI 1382 - HC - Income TaxIssues involved: The validity of the order of the Income Tax Appellate Tribunal (ITAT) under Section 144C of the Income Tax Act, 1961. Judgment Summary: Issue 1: Validity of the ITAT order The appellant challenged the ITAT order which upheld the view of the Dispute Resolution Panel (DRP) that the assessment under Section 144C of the Income Tax Act exceeded the statutory limitation period. The DRP's directions were framed beyond the prescribed 30-day period, leading to the assessment being deemed invalid. Issue 2: Compliance with statutory timelines The court referred to a previous judgment where it was established that the Assessing Officer (AO) must complete the assessment in conformity with the DRP's directions within one month. The court emphasized that the timelines under Section 144C are mandatory, as affirmed by the Bombay High Court in previous cases. Issue 3: Role of Transfer Pricing Officer (TPO) The court clarified that once the DRP issues directives, the role of the Transfer Pricing Officer (TPO) ends, and there is no need for further involvement. The directive must be uploaded on the ITBA portal for valid service, and any assessment must be completed within the prescribed timelines. Conclusion: Considering the failure to comply with mandatory timelines and the invalidity of the assessment due to exceeding the statutory limitation period, the court found no merit in the appeal and dismissed it.
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