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TMI Blog2021 (3) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... we are of the view that the issuance of draft assessment order cannot end up increasing the time limit for completion of the assessment under section 143(3) of the Act. This issue has been adjudicated by the co-ordinate bench of this Tribunal in the case of IPF India Property Cyprus (No.1) Ltd.[ 2020 (2) TMI 1500 - ITAT MUMBAI] We noted that in the present case neither the learned Sr. DR nor the assessee has disputed the fact and there is proposed variation in the income or losses reported by the assessee to the Income Tax Authorities. The matter before the Assessing Officer was only with respect to the rate of tax chargeable by the assessee and actually there is no variation in income or losses - we allow this additional ground of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised vide ground No. 8: - Ground No.8 On the facts, in the circumstances of the case, in law and without prejudice to earlier grounds, the Ld. Assessing Officer has erred in not passing the assessment order within the time limit prescribed for competing of assessment proceedings under section 153 of the Act. 4. The learned Counsel for the assessee Mr. PJ Pardiwalla stated that in the assessment proceedings for AY 2013-14, the Assessing Officer passed the draft assessment order denying the beneficial provisions of Article 11 of the India-Cyprus tax treaty to the assessee in respect of interest income earned by it from its investment in India and tax the interest income at the rate of 40% + applicable surcharge and education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order under section 143(3) read with section 144C(1) of the Act. It was argued by the learned Sr. DR that the assessee has not examined the issue as to whether the decision of the Assessing Officer is prejudicial to the interest of an eligible assessee considering the increase in the tax liability absent variation to the returned income. Further, the learned Sr. DR stated that no prejudice is caused to the assessee by passing draft assessment order rather; on the contrary, assessee got an opportunity to address its grievance before DRP. It was contended that even the amendment was to remove the hardship of eligible assessee on whose demand of additional tax liability which was raised by passing a final assessment order in absent of va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment would have been time barred as on 31.12.2016, the present assessment order dated 16.10.2017. Once, we hold that no draft assessment order would have been issued in this case as the provisions of Section 144C(1) of the Act could not have been invoked in this case. The time limit for completion assessment was available only to 31.12.2016, hence, we are of the view that the issuance of draft assessment order cannot end up increasing the time limit for completion of the assessment under section 143(3) of the Act. This issue has been adjudicated by the co-ordinate bench of this Tribunal in the case of IPF India Property Cyprus (No.1) Ltd. Vs. DCIT (2020) 183 ITD 46 (Mumbai-Trib.), wherein it is held as under: - 6. Once this amendm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is required on these grievances at this stage. 8. We noted that in the present case neither the learned Sr. DR nor the assessee has disputed the fact and there is proposed variation in the income or losses reported by the assessee to the Income Tax Authorities. The matter before the Assessing Officer was only with respect to the rate of tax chargeable by the assessee and actually there is no variation in income or losses. Once, this is a fact the issue is squarely covered by the decision of this Tribunal in the Case of IPF India Property Cyprus (No.1) Ltd. (supra). Respectfully following the same, we allow this additional ground of the assessee and hold that the assessment framed by Assessing Officer is time barred and hence quashed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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