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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M. S. Sonak, Jitendra Jain, JJ.
Pr. Commissioner Of Income Tax-13, Mumbai – Appellant
Versus
Sterling Oil Resources Ltd. – Respondent
Judgment :
(Jitendra Jain) :
1. This appeal is filed under Section 260A of the Income Tax Act, 1961 (‘The Act’) by the appellant-revenue for the assessment year 2010-11 challenging the order of the Income-tax Appellate Tribunal (‘Tribunal’) dated 22 June 2016.
2. The following substantial question of law proposed by the appellant- revenue is admitted and by consent of both the parties taken up for final hearing :
“Whether on the facts and in circumstances of the case and in law, the Hon’ble ITAT was justified in considering the order passed by the AO under Section 143 (3) r.w.s. 144C (13) being barred by limitation of time and not deciding the issue on merits ?”
3. Brief undisputed facts are as under :-
(i) The respondent-assessee filed its return of income for the assessment year 2010-11 on 13 October 2010. On 6 September 2012, a reference was made under Section 92CA of the Act to the Transfer Pricing Officer (TPO), who vide order dated 28 January 2014 proposed an adjustment of Rs.108.36 crore to be made to the arm’s length price of the international transactions. Pursuant to the said TPO’s order, a draft assessment order was framed on 28 March 2014.
(ii) The appellant objected to the ab
The time limit for completing assessments under Section 144C(13) of the Income Tax Act is mandatory, and failure to comply renders the assessment invalid.
The time limit under Section 144C(13) of the Income Tax Act is mandatory, and any assessment order passed beyond this limit is invalid.
The main legal principle established in the judgment is that the failure to comply with the time limits prescribed under Section 144C of the Income Tax Act constitutes an illegality that vitiates the....
Strict adherence to time limits under Section 144C is essential for the validity of assessment orders, as non-compliance vitiates the proceedings.
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