Altran Technologies India Private Limited, Bengaluru V. The Deputy Commissioner Of Income Tax, Circle-1(1)(1), Bengaluru

ITTPA 977/BANG/2022

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The case involves M/s. Altran Technologies India Private Limited appealing against the final assessment order for the assessment year 2018-2019, which was passed by the Deputy Commissioner of Income-tax, Circle 1(1)(1), Bangalore. The primary legal issue raised was the timeliness of the final assessment order in relation to the Dispute Resolution Panel's (DRP) directions. The appellant argued that the final order was passed beyond the statutory deadline, rendering it invalid. The Tribunal examined the timelines and found that the final order was indeed passed late, leading to the acceptance of the appellant's argument and the setting aside of the final assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 115209 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 04-12-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 29-11-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 06-10-2022
• Other Referred Cases: Union of India and Others v. G.S.Chatha Rice Mills and Another (2021) 2 Supreme Court Cases 209
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 143(3); 144C; 143(2); 153

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “A”, BANGALORE Before Shri George George K, JM & Shri Laxmi Prasad Sahu, AM IT(TP)A No.977/Bang/2022 : Asst.Year 2018-2019 M/s.Altran Technologies India Private Limited, Block 9B, Pritech Park SEZ, Bellandur Village Varthur Hobli Bangalore – 560 103. PAN : AAACA7125R. v. The Deputy Commissioner of Income-tax, Circle 1(1)(1) Bangalore. (Appellant) (Respondent) Appellant by : Sri.Nageswar Rao, Advocate Respondent by : Sri.K.Sankar Ganesh, JCIT-DR Date of Hearing : 30.11.2022 Date of Pronouncement : 05.12.2022 O R D E R Per Laxmi Prasad Sahu, AM : This is an appeal filed by the assessee against the final assessment order passed by the Assessing Officer on 11.08.2022 u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the I.T.Act. for the assessment year 2018-2019. 2. The assessee has raised as many as 24 grounds, but during the course of hearing, the learned AR confined his argument only to ground No.1, challenging the legal issue, which is as under:- “1. Impugned order dated 11.08.2022 passed by Assessment Unit, Income tax Department, claimed to be pursuant to directions issued by ld.DRP dated 14.06.2022, is barred by limitation and liable to be quashed. Consequent demand notice is also invalid, unlawful and bad in law. ” IT(TP)A No.977/Bang/2022. M/s.Altran Technologis India Private Limited. 2 3. The brief facts of the case are that the assessee has filed its return of income on 30.11.2018 declaring total loss of Rs.1,46,41,112. The case was selected for scrutiny and notice u/s 143(2) of the Act was issued on 22.09.2019 and other statutory notices were issued to the assessee. In response to which, the assessee has filed requisite details. From the documents filed by the assessee, it was noticed that the assessee had undertaken international transactions. Therefore, after obtaining approval from the competent authority, the case was referred to the Transfer Pricing Officer (TPO) for determination of Arm’s Length Price (ALP) of the international transactions undertaken by the assessee. The learned TPO proposed for making TP adjustment of Rs.29,89,69,889. Accordingly, the Assessing Officer passed order u/s 144C of the Act on 06.09.2021 and assessed the income of Rs.80,29,30.350. 4. Aggrieved by the draft assessment order, the assessee field objections before the learned Dispute Resolution Panel (DRP). The learned DRP vide its directions dated 14.06.2022 allowed some marginal relief. Pursuant to the directions of the DRP, the A.O. passed final assessment order u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act on 11.08.2022, assessing the total income of Rs.54,73,56,610. 5. Aggrieved by the directions of the learned DRP, the assessee has filed the present appeal before the Tribunal. The learned AR submitted that as per email attached to the order IT(TP)A No.977/Bang/2022. M/s.Altran Technologis India Private Limited. 3 sheet details, the order was passed by the learned DRP only in the month of June 2022, which has been dispatched also in the month of June 2022. The learned AR also referred appeal sheet page No.220 to 221. Page No.220 is a letter No.F.No.167/DRP-1/BNG/2022-23 dated 01.09.2022, addressed to the assessee by the ITO (OSD) & Secretary (DRP- 1), According to the learned AR, as per ITBA-DRP proceedings, the email sent time stamp is 15.06.2022 at 05.28 PM and email delivered time stamp is 15.06.2022 at 5.29 PM. According to this letter, the order was received by the AO on 15.06.2022, therefore, the A.O. should have passed final assessment order on or before 31.07.2022. However, in the present case, the final assessment order was passed by the A.O. on 11.08.2022, which is barred by limitation. In support of this contention, the learned AR relied on the judgment of the Hon’ble Supreme Court in the case of Union of India and Others v. G.S.Chatha Rice Mills and Another reported in (2021) 2 Supreme Court Cases 209. 6. The learned Departmental Representative, on the other hand, relied on the orders of the authorities below, apart from placing on record the copy of the order sheet. 7. After hearing both the parties and perusing the entire material available on record and the orders of the authorities below, we find that the learned DRP’s direction is dated 14.06.2022, which was received by the A.O. on 15.06.2022. Therefore, as per section 144C(13) of the Act, the A.O. should IT(TP)A No.977/Bang/2022. M/s.Altran Technologis India Private Limited. 4 have passed the final assessment order, notwithstanding anything to the contrary contained in section 153 [or section 153B], within one month from the end of the month in which such direction is received. For the sake of convenience, we are reproducing copy of the order sheet submitted by the ld. DR, as under:- IT(TP)A No.977/Bang/2022. M/s.Altran Technologis India Private Limited. 5 8. From the above copy of the order sheet, it is clear that the order has been received by the A.O. on 30 th June, 2022 and the order has been passed by the A.O. on 11.08.2022 which is beyond the period specified in section 144C(13) of the Act. Accordingly, we hold that the final assessment order passed by the A.O. is barred by limitation and nonest in the eyes of law. Therefore, ground No.1 is allowed. 9. Since the learned AR did not argue other grounds on merits, the same are left open and not adjudicated. 10. In the result, the appeal filed by the assessee is partly allowed in above terms. Order pronounced on this 05 th day of December, 2022. Sd/- (George George K) Sd/- (Laxmi Prasad Sahu) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore; Dated : 05 th December, 2022. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The DRP - 1, Bangalore. 4. The DCIT-1 , Bengaluru. 5. The DR, ITAT, Bengaluru. 6. Guard File. Asst.Registrar/ITAT, Bangalore