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2024 (8) TMI 1486 - AT - Income TaxValidity of final Assessment Order as barred by limitation - HELD THAT - As RELYING ON Fiber Home India Pvt. Ltd. 2024 (2) TMI 1382 - DELHI HIGH COURT we hold that the Assessment Order is barred by limitation. Appeal of the assessee is allowed.
Issues:
1. Final Assessment Order barred by limitation. Analysis: The appeal was filed against the order passed by the AO under section 143(3) read with 144C(13) of the Income Tax Act, 1961. The Tribunal considered the chronological events leading to the final assessment order being passed. The order by the Transfer Pricing Officer (TPO), draft assessment order by the NFAC, DRP directions, intimation letter, and the TPO's consequential appeal effect order were all crucial in determining the timeline. It was observed that the final assessment order was beyond the limitation period, thus establishing that it was barred by limitation. Regarding the issue of limitation, the Tribunal referred to a judgment of the Hon'ble jurisdictional High Court of Delhi in the case of PCIT Vs. Fiber Home India Pvt. Ltd. The High Court's order highlighted the importance of completing the assessment within the prescribed time frame as per Section 144C of the Act. The Court emphasized that once directions are received from the DRP, the AO must complete the assessment within one month without providing any further opportunity of hearing to the assessee. The mandatory nature of the timelines under Section 144C was underscored, and failure to comply could render the assessment order and penalty proceedings liable to be set aside. The Tribunal, in line with this interpretation, held that the Assessment Order in the present case was indeed barred by limitation and subsequently allowed the appeal of the assessee. In conclusion, the Tribunal found that the final Assessment Order was indeed barred by limitation as per the provisions of the Income Tax Act, 1961. The judgment emphasized the mandatory nature of the timelines under Section 144C and the consequences of non-compliance. The decision was in favor of the assessee, leading to the allowance of the appeal.
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