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TMI Blog2024 (12) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The AO, finally, held that the consideration received from Genpact India during AY 2017-18 as membership fees for accessing server to exposure new customers are in the nature of Royalty/FTS paid by resident to non- resident company in accordance with section 9(1)(vi)/9(1)(vii) r.w.s 115A of the Act and chargeable to tax in India in the hands of the assessee. 5. Aggrieved, the assessee went in appeal before the DRP but without any success. 6. At the very outset, the ld. counsel for the assessee contended that though the assessee has filed several grounds on merits, she wants to contend a legal ground of limitation. The ld counsel of the assessee vehemently argued that the Assessing Officer s impugned order passed u/s 143(3) r.w.s 144C of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessee also relied upon several judicial decisions to support her case on merits. a) CIT v Ad2pro Media Solutions P Ltd (2023) 157 taxmann.com 205(SC) b) CIT v Ad2pro Media Solutions P Ltd (2023) 148 taxmann.com 226(Karn) c) CIT v MOL Corporation (2024)162 taxmann.com 197(Del) 10. The ld. DR relied on the orders of the authorities below. The ld DR, however did not controvert the facts as narrated by the ld counsel of the assessee with regard to the dates of order being passed u/s 144C of the Act. 11. We have heard the rival submissions and have perused the relevant material on record. The core issue that is before us for adjudication is whether the order passed by the Assessing Officer is beyond the time limit prescribed. In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Genpact India Pvt Ltd during the A.Y 2017-18 as membership fees for accessing server to gain exposure to new customer . The AO subsequently finding that the assessee has not filed its return in response to notice u/s 148 and there is no explanation for the taxability of the receipts as Royalty/Fees for technical service, passed a draft assessment order u/s 144C(1) on 27.05.2023 proposing to make a variation in the return of income. As per the provision of section 144C(4), the Assessing Officer now has to pass a final assessment order within 1 month from the end of the month in which period of filing objection u/s 144C(2) expires. The assessee received the draft order on 27.05.2023 and hence the due date for filing objections before the DRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to either approach the DRP route by filing objections before the DRP or choose the appellate recourse by filing an appeal before the CIT(A). If an assessee opts to be governed by the procedure enshrined for the DRP reference, then the DRP is supposed to issue directions within nine months from the end of the month in which the draft order is forwarded to the eligible assessee as per sub-section (12) of section 144C. Sub-section (13) provides that upon a receipt of the direction in sub-section (5), the AO shall complete assessment within one month from the end of the month in which such a direction is received. At this juncture, it is significant to have a glance at the mandate of sub-section (3) of section 144C, which runs as under :- The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the assessee in limine by opining that the assessee could not have filed objections outside the time limit provided under sub-section (2) of section 144C. The net effect of the order of the DRP is that the objections filed by the assessee were time barred and hence no cognizance could have been taken of them. Once the objections filed by the assessee are time barred, the natural corollary is that no valid objections were filed by the assessee. One cannot contemplate a situation that the objections are invalid for the DRP so as not to issue any direction u/s 144C(5) and valid for the AO so as to pass order u/s 144C(13) of the Act. If the objections are invalid as time barred having not been filed within the time prescribed under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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