The Tax Publishers2020 TaxPub(DT) 4102 (Mum-Trib)

INCOME TAX ACT, 1961

Section 144C Section 153(1)

Provisions of section 144C inserted by Finance (No. 2) Act, 2009 were applicable from assessment year 2011-12 onwards and same did not apply to the concerned assessment year 2009-10. Accordingly, AO was under obligation to pass assessment order within time specified under 3rd proviso to section 153(1), i.e., on or before 31-3-2013 though TPO passed order under section 92CA(3) on 9-1-2013.

Assessment - Time limit - Applicability of provisions of section 144C prior to assessment year 2011-12 -

TPO passed order under section 92CA(3) on 9-1-2013. AO passed draft assessment order on 27-3-2013. Thereafter, AO was required to pass final assessment order within limitation period provided under section 153(1), i.e., by 31-3-2013, whereas final assessment order was passed on 13-5-2013, i.e., after expiry of limitation period. Assessee assailed validity of assessment order being barred by limitation. Assessee contended that time-limit for passing assessment order in the concerned assessment year did not get extended by application of section 144C. Held: Section 144C was inserted to statute by Finance (No. 2) Act, 2009. The new section gave an option to eligible assessee to opt for an alternative mechanism for the fast track dispute resolution. The introduction of section 144C was not merely procedural change but a substantive change providing an option to assessee to take advantage of fast track disposal of grievance by Dispute Resolution Panel (DRP). Provisions of section 144C inserted by Finance (No. 2) Act, 2009 were applicable from assessment year 2011-12 onwards and same did not apply to the concerned assessment year 2009-10 or to earlier assessment years. Accordingly, AO was under obligation to pass assessment order within time specified under 3rd proviso to section 153(1), i.e., on or before 31-3-2013. Since order had been passed beyond period of limitation, the same was null and void.

Followed:Vedanta Limited v. Asstt. CIT Writ Petition No. 1729 of 2011, decided on 22-10-2019 : 2020 TaxPub(DT) 44 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10



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