Final Assessment Orders Passed u/s 144C(13) r.w.s. 153 are Without Jurisdiction: ITAT Quashes Proceedings following Judicial Precedent [Read Order]
As the cited precedent was pending in appeal before the Apex Court, the Bench allowed both parties to revive the appeals in case the the law laid down is reversed
The Delhi Bench of the Income Tax Appellate Tribunal has quashed the final assessment orders for Assessment Years 2010-11 and 2011-12 on the ground that they were barred by limitation under Section 144C(13) read with Section 153 of the Income Tax Act, 1961.
AECOM India P. Ltd. challenged the validity of the assessment orders by raising an additional legal ground contending that the final orders for both assessment years were time-barred under Section 144C(13) r.w.s. 153 of the Act.
The Bench comprising Vikas Awasthy (Judicial Member) and Sanjay Awasthy (Accountant Member), observed that the core issue was whether the limitation for passing the final assessment order under Section 144C(13) is to be examined independently or in conjunction with Section 153 of the Act.
The assessee placed reliance on the decision of the Madras High Court in CIT vs. Roca Bathroom Products P. Ltd. and submitted that the provisions of Section 144C are to be read along with Section 153 for determining the period of limitation. It was contended that various Benches of the Tribunal have consistently taken a view that assessment orders passed beyond the period prescribed under Section 144C(13) r.w.s. 153 are liable to be quashed.
The Department raised a preliminary objection stating that the issue is pending before the Supreme Court in Shelf Drilling Ron Tappmeyer Ltd., where a split verdict was rendered and the matter has been referred to a Larger Bench. It was submitted that the Supreme Court had directed that the impugned judgment shall not be cited as a precedent.
The Tribunal noted that the Madras High Court had held that Sections 144C and 153 are not mutually exclusive but are mutually inclusive and inter-dependent. The period of limitation for passing the final assessment order under Section 144C(13) has to be determined with reference to Section 144C read with Section 153 of the Act.
The Bench also recorded that for A.Y. 2010-11, the due date for passing the final assessment order was 31.03.2014, whereas the order was actually passed on 23.01.2015. Similarly, for A.Y. 2011-12, the due date was 31.03.2015, while the final assessment order was passed on 22.12.2015. These dates were not disputed by the Revenue.
In view of the above, following the ratio laid down in Roca Bathroom Products P. Ltd., the Tribunal held that the final assessment orders were without jurisdiction. Consequently, the assessment orders for A.Ys. 2010-11 and 2011-12 were quashed.
It was further observed that both parties can revive the appeals in case the Supreme Court reverses the law laid down in Roca Bathroom Products P. Ltd.
The appeals of the assessee were accordingly allowed.
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