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TMI Blog2025 (3) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... g Ground No.2:- "(2) The Ld.CIT(A) has erred in arriving the conclusion that the impugned assessment order is barred by time limitation without considering the facts that the actual limitation date (31.03.2021) for completion of assessment u/s 153 of the IT Act, 1961 extended to 30.09.2021 by virtue of series of CBDT's notifications (S.O.966(E) dated 27.02.2021, S.O.1703(E) dated 27.04.2021 & S.No.2580(E) dated 25.06.2021) and further extended to 31.09.2022 by a period of 12 months as per provisions of Section 92CA(1) & 153(4) of the IT Act, 1961." 3. Brief facts are that the assessee is a public limited company engaged interalia, in the business of manufacturing and trading of cement. The assessee company filed its return of income for the relevant assessment year 2019-20 on 30.09.2020. The assessment was framed by the Assessment Unit of Income Tax Department u/s. 143(3) r.w.s. 144C(3) r.w.s. 144B of the Act vide order dated 30.09.2022 for the relevant assessment year 2019-20. The assessee before CIT(A) contended that the assessment order passed by the Assessment Unit / AO is barred by limitation. The assessee before CIT(A) contended that the assessee during the course of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extension beyond this date was provided either through CBDT notifications or the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Additionally, the Transfer Pricing Office's order was passed within the requisite 60 days prior to the due date, confirming that no further extension was granted. I am in agreement with the understanding of the appellant that the CBDT notifications cited by the Assessing Officer (AO) do not apply in this case, as it did not extend the time limit beyond 31-03-2022. CBDT notification no. 10 of 2021 dated 27.02.2021 states that the time limit for completion of assessment which expires on 31.03.2021 due to extensions provided in earlier notifications, such time limit would be extended to 30.04.2021. This time limit of 30.04.2021 has been extended to 30.06.2021 vide CBDT notification no. 38 of 2021 dated 27.04.2021 and further extended to 30.09.2021 vide CBDT notification no. 74 of 2021 dated 25.06.2021 Any assumption of any extension for the next assessment year (i.e 2022) on the basis of above notifications, would not be valid. As a result, the assessment order in the present case to be treated as barred by time limit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 92CA(1) of the Act mandates that the Assessing Officer has to make a reference to the TPO with the previous approval of the PCIT/CIT for computation of the arm's length price in relation to the international transaction. The CBDT Instruction No.3 of 2016 sets out guidelines for implementation of the TP provisions, hence, a reference has to be made by the Assessing Officer to the TPO in accordance with provisions of section 92CA read with CBDT Instruction No.3/2016. The provisions of Section 92CA(3A) specifies the time line for passing of the order by TPO u/s. 92CA(3) of the Act. The TPO has to pass the order u/s. 92CA(3) at any time before 60 days prior to the date of expiry of limitation for completion of the assessment. Any reference made by the Assessing Officer to TPO in deviation in terms of approvals, time line, etc. that has the effect of jeopardizing the assessment would make the reference invalid. Such invalid reference is in fact no reference. 9. In the instant case, the TPO returned reference by placing reliance on Office Memo dated 28/06/2021. The said Office Memo is with regard to limitation period for transfer pricing proceedings particularly for Assessment Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to TPO, by that time the period to pass the order by the TPO u/s. 92CA(3) of the Act had already elapsed. As is evident from Office Memo the last date for passing the order for TPO was 31/07/2021. The reference made by Assessing Officer to the TPO was clearly time barred and invalid. Such reference is no reference in the eye of law. 11. The Assessing Officer completed the assessment giving a go bye to the mandatory provisions of section 92CA and CBDT Instruction No.3 of 2016. Such an assessment order definitely falls within the meaning of erroneous and prejudicial to the interest of Revenue as envisaged u/s. 263 of the Act. The ld. Counsel for the assessee has pointed that in ITBA portal the last date for completion of assessment was mentioned as 30/09/2022, therefore, the Assessing Officer has reason to believe that he has still time to make reference. We find no force in the submission of the ld. Counsel for the assessee. The limitation for completion of assessment is to be determined strictly in accordance with the provisions of the Act and not dates mentioned in ITBA portal. The Department had issued Office Memo dated 28/06/2021 (supra) clarifying the doubts over issue o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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