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2024 (12) TMI 809 - AT - Income Tax


Issues:
1. Timeliness of final assessment order under section 144C of the Income-tax Act, 1961.

Detailed Analysis:
The judgment pertains to an appeal by the assessee against the order of the DCIT, Central Circle International Tax, regarding the assessment year 2017-18. The core issue revolves around the timeliness of the final assessment order passed under section 144C of the Income-tax Act, 1961. The assessee contended that the order was beyond the prescribed time limit, which is crucial for the adjudication of the matter. The assessing officer issued a notice under section 148 to tax a specific amount received by the assessee from a company. Subsequently, a draft assessment order was passed on 27.05.2023, and objections were filed before the DRP on 06.07.2023. However, the final assessment order was issued on 04.03.2024, exceeding the deadline of 31.07.2023 for passing the order as per the statutory provisions.

The legal representative of the assessee argued that the final assessment order was passed after the expiration of the prescribed time limit, rendering it void ab initio. The assessing officer was obligated to pass the final assessment order within one month from the end of the month in which the period for filing objections under section 144C(2) expired. However, the order was delayed beyond the stipulated timeline, leading to a violation of the statutory provisions. The tribunal analyzed the provisions of section 144C(1), 144C(3), and 144C(4) of the Act to determine the legality of the order.

In light of the facts presented, the tribunal concluded that the final assessment order was indeed passed beyond the prescribed time limit, making it void ab initio. Citing precedents and legal provisions, the tribunal emphasized the importance of adhering to statutory timelines in assessment proceedings. The judgment highlighted similar cases where orders passed beyond the specified deadlines were deemed void due to the violation of statutory provisions. Consequently, the tribunal allowed the appeal of the assessee solely on the legal ground of the order being time-barred, without delving into the merits of the case.

In summary, the judgment primarily focuses on the timeliness of the final assessment order under section 144C of the Income-tax Act, 1961. By analyzing the statutory provisions and legal precedents, the tribunal concluded that the order passed by the assessing officer was beyond the prescribed time limit, rendering it void ab initio. The decision highlights the significance of complying with statutory timelines in assessment proceedings to ensure the legality and validity of the orders issued.

 

 

 

 

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