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2024 (12) TMI 809 - AT - Income TaxValidity of order passed u/s 143(3) r.w.s 144C as beyond the time limit prescribed under the Statute - HELD THAT - The assessee received the draft order on 27.05.2023 and hence the due date for filing objections before the DRP u/s 144C(2) became 26.06.2023. However, the assessee filed the objection before the DRP on 06.07.2023. As the assessee did not file the objections within the time prescribed i.e., one month from the date of draft assessment order, the assessing officer was mandatorily required to pass the final assessment order u/s 144C(4) by 31.07.2023. AO however, passed the final order u/s. 147 r.w.s. 144 on 04.03.2024. From the factual matrix as narrated above we can only arrive at the inescapable conclusion that the AO has not followed the due and mandatory provision of adhering to the prescribed time limit for passing the final assessment order. When considered under the provisions of section 144C(3)/144C(4) of the Act, we have no hesitation to hold that the final assessment order is passed beyond the prescribed time limit and hence is barred by limitation. We accordingly, hold that the impugned Final assessment order is liable to be quashed as void ab initio. See TDK ELECTRONICS AG (FORMERLY KNOWN AS EPCOS AG) C/O. EPCOS INDIA PVT. LTD. 2020 (2) TMI 1277 - ITAT PUNE - Assessee appeal allowed.
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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