9911796707
TMI Blog2023 (4) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... ond proviso to Explanation-1 of Section 153 is categoric in stating that period of limitation available to the Assessing Officer for making an order of assessment shall be extended to 60 days. The 60 days period, thus must run from the date of transfer pricing order to provide for the seamless completion of assessment. The transmission of a transfer pricing order from the TPO to the Assessing Officer is an internal administrative act and cannot impact statutory limitation, which is the exclusive prerogative of Section 153 alone. The issuance of the direction and the communication of such direction by the Joint Commissioner to the assessing officer to aid in the completion of assessment is expected to be within the overall limits provided for completion of assessment under Section 153 and Explanation (1) thereto and nowhere it is contemplated that such reference would extend the limitation. This situation is not a situation that finds reference in the situations set out in Explanation I to Section 153. So too in the present case. The impugned order of assessment is held to be barred by limitation and is set aside. This writ petition is allowed. - W.P.No.25511 of 2019 & WM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 24.05.2019. (vii) Explanation to Section 153 sets out certain exclusions in computing period of limitation taking into account events that might intervene pending proceedings at various stages. (viii) Clause (x) of Explanation-1 to Section 153 refers to the exclusion of the period when the TPO was awaiting information from the competent authority and reads as follows: Time limit for completion of assessment, reassessment and recomputation. 153. ...... Explanation 1- For the purpose of this section, in computing the period of limitation- ...... (x) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A and ending with the date on which the information requested is last received by the Principal Commissioner or Commissioner or a period of one year, whichever is less; or (ix) The period between 29.10.2018 and 27.03.2019 is thus to be excluded in computing the time available to the TPO to pass an order of transfer pricing. (x) The first proviso to Section 92(CA)(3A) states that, if on exclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 60 days, being 28.12.2018. The transfer pricing order was passed on 24.05.2019 in light of the multiple extensions of time in the interim. (xvi) The second proviso under Explanation-1 to Section 153 would then stand triggered, whereunder, limitation for completion of assessment in a situation where the limitation for completion of TPO stands extended, also stands extended to 60 days. The second proviso under Explanation 1 to Section 153 reads thus: 153. Time limit for completion of assessment, reassessment and recomputation. ...... Explanation-1 ...... Provided further that where the period available to the Transfer Pricing Officer is extended to sixty days in accordance with the proviso to sub-section (3A) of section 92CA and the period of limitation available to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly. (xvii) With the passing of the transfer pricing order on 24.05.2019, leaving less than 60 days for completion of assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut under Explanation-1 to Section 153C itself. 11. The time limits set out under sub-section (3A) of Section 92CA are thus subject to the limitation prescribed under Section 153 that can, under no circumstances, be tampered with. If the argument of the revenue is to be accepted, the limitation set out under Section 153 would stand distorted, which is an incorrect understanding of the legal position. 12. The second proviso to Explanation-1 of Section 153 is categoric in stating that period of limitation available to the Assessing Officer for making an order of assessment shall be extended to 60 days. The 60 days period, thus must run from the date of transfer pricing order to provide for the seamless completion of assessment. 13. The transmission of a transfer pricing order from the TPO to the Assessing Officer is an internal administrative act and cannot impact statutory limitation, which is the exclusive prerogative of Section 153 alone. 14. There are other situations as well where, in the course of an assessment, the officer is permitted to seek the assistance of experts, such as i) Under Section 142 (2A) for special audit by an accountant, if the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
