AI Insights
The case involves Canon India Pvt. Ltd., the appellant, contesting the final assessment order issued by the DCIT, Circle-4(2), New Delhi, the respondent, for the Assessment Year 2012-13. The primary legal issue was whether the final assessment order was barred by limitation and should be declared void ab initio. The Tribunal examined the timeline of the assessment process, particularly the adherence to the statutory deadlines for passing the final assessment order following the directions of the Dispute Resolution Panel (DRP). The Tribunal concluded that the final assessment order was issued beyond the permissible time frame, leading to its invalidation.
Appeal details
Counselvise Citation
[2024] 140 COUNSELVISE.COM (IT) 34869 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 3 month(s) 21 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
13-12-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
H
Assessment Year
2012-2013
Appeal Filed On
22-08-2022
Judgement Text
"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 1940/Del/2022 (Assessment Year: 2012-13) Canon India Pvt. Ltd, 7th Floor, Building No. 5, Tower-B, DLF Cyber City, DLF Phase III, Gurugram 122002 Vs. DCIT, Circle-4(2), New Delhi (Appellant) (Respondent) PAN:AAACC4175D Assessee by : Shri Himanshu S. Singha, Adv Shri Prashant Maharchandani, Adv Shri J. S. kataria, Adv Revenue by: Shri Safarul Haque Tanweer, CIT DR Date of Hearing 10/12/2024 Date of pronouncement 13/12/2024 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.1940/Del/2022 for AY 2012-13, arises out of the order of Assessing Officer [hereinafter referred to as ‘ld. AO’, in short] in Appeal No. ITBA/ASI/S/143(3)/2022-23/1043926421(1) dated 25/02/2022. 2. The only issue to be decided in this appeal is as to whether the final assessment order framed by the Learned AO could be construed as barred by limitation and had to be declared as void abinitio in the facts and circumstances of the instant case. ITA No. 1940/Del/2022 Canon India Pvt. Ltd Page | 2 3. We have heard the rival submissions and perused the materials available on record. To address the issue in dispute, we find that the provisions of section 144C(13) of the Act stipulates that the final assessment order pursuant to the directions of Learned DRP should be passed by the assessing officer within one month from the end of the month in which such directions were received. In the instant case, the DRP directions were issued on 28-01-2022 under section 144C(5) of the Act. The order giving effect to DRP was passed by the Learned Transfer Pricing Officer on 17-02-2022 which is enclosed in page 26 of the appeal set. The final assessment order was framed by the assessing officer after considering the DRP directions and the order giving effect passed by the Learned TPO on 25-02-2022. 4. The Learned AR before us placed on record the screenshot from ITBA portal which showed that Document Identification Number (DIN) was generated for the final assessment order and for demand notice issued under section 156 of the Act by the Learned assessing officer only on 19- 7-2022. Even the final assessment order was digitally signed by the Learned AO only on 19-7-2022 which is evident from last page of the final assessment order. Accordingly, he submitted that in terms of section 144B(6)(i)(b) and 144B(6)(ii) of the Act, the final assessment order was duly authenticated by digitally signature of the Learned AO only on 19-07- 2022. The time limit available to the assessing officer to frame the final assessment order expired on 28-2-2022. 5. It is not in dispute that in the instant case, the final assessment order was duly authenticated by affixing digital signature and by duly generating DIN only on 19-07-2022. This is beyond the time limit prescribed under section 144C(13) of the Act. Accordingly, the assessment is barred by limitation. Hence, we hold that the final assessment order "
