LUMINOUS POWER TECHNOLOGIES PRIVATE LTD.,NEW DELHI V. DCIT,CIRCLE-13(1), NEW DELHI

ITA 1593/DEL/2022

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Luminous Power Technologies Pvt. Ltd. appealed against the final assessment orders for the Assessment Years 2017-18 and 2018-19, which were issued by the Deputy Commissioner of Income Tax, Circle 13(1), New Delhi. The appeals were based on the grounds that the final assessment orders were passed beyond the statutory time limit prescribed under Section 144C(13) of the Income Tax Act, 1961. The Tribunal considered various judicial precedents that supported the view that non-compliance with the procedural timelines for passing assessment orders is a sufficient ground for setting aside such orders. The Tribunal's decision emphasized the importance of adhering to statutory deadlines in the assessment process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790645 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2017-2018
• Appeal Filed On: 13-07-2022
• Other Referred Cases: Louis Dreyfus Company India (P.) Ltd. vs. DCIT, PCIT vs. Fiberhome India (P.) Ltd., PCIT vs. Sterling Oil Resources Ltd., Rapiscan Systems (P.) Ltd. vs. ADIT, CIT vs. Ramco Cements Ltd., Hyundai Rotem Company Indian Project Offices vs. ACIT, Rio Tinto India Private Ltd. vs. ACIT, Microsoft Corporation (India) P. Ltd. vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.K. JADHAV
• Assessee Lawyers: AJAY VOHRA; SOUMYA JAIN
• Keywords: Set aside; Opportunity of being heard; Transfer pricing; International transaction; Rectification of order
• Section: 143(3); 154

Judgement Text

"1 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [DELHI BENCH:“H” New Delhi] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER I.T.A. No. 1593/DEL/2022 (A.Y 2017-18) I.T.A. No. 1594/DEL/2022 (A.Y 2018-19) Luminous Power Technologies Private Ltd. C-56, Mayapuri Industrial Area, Phase-II, New Delhi-110064PAN: AAACS3561K Vs Deputy Director of Income Tax, Circle 13(1), New Delhi Appellant Respondent Assessee by Sh. Ajay Vohra, Sr. Adv & Ms.Soumya Jain, CA Revenue by Sh. S. K. Jadhav, CIT- DR Date of Hearing 12/11/2025 Date of Pronouncement 05/12/2025 ORDER PER YOGESH KUMAR, U.S. JM: The captioned appeals are filed by the assessee pertaining to Assessment Years 2017-18& 2018-19 challenging the Final Assessment Orders passed u/s 143(3) r.w. Section 144C(13) of the Income Tax Act, 1961 ('Act' for short) by Deputy Commissioner of Income Tax, Circle -13(1)- Delhi dated 15/05/2022 & 18/05/2022 respectively. 2. Both the appeals are pertaining to single assessee and identical contentions are raised by the Ld. Senior Counsel Sh. Ajay Vohra appearing for Assessee's Representative. Therefore, both the Appeals of the Assessee are decided in this common order. For the sake of convenience, brief facts of the case for A.Y 2017-18 has been considered which are as under:- Printed from counselvise.com 2 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT Assessee filed return of income for A.Y 2017-18 at Rs. 1,66,06,01,330/, which has been processed by CPC on the returned income. The case of the Assessee was selected under CASS and notices were issued which have been replied by the Assessee. Considering the fact that the Assessee has entered into international transaction with Associated Enterprises (A.E), a reference u/s 92CA of the Act made to the T.P.O. for determining ‘Arm’s Length Price’ in respect of international transaction/specific domestic transactions undertaken by the Assessee during the F.Y 2015-16. The Ld. T.P.O. passed an order u/s 92CA(3) of the Act on 31/01/2021 determining the transfer price adjustment to be made to the income of the Assessee. Subsequently, a rectification order u/s 154 of the Act was passed by the TPO on 05/02/2021 by rectifying the order passed du/s 92CA(3) of the Act, wherein proposed to make an adjustment of Rs. 4,62,26,427/. The Assessee filed objection before the Dispute Resolution Panel (‘DRP’) and the Ld. DRP issued directions u/s 144C(5) of the Act on 04/03/2022. An order giving effect to the directions of TPO came to be passed u/s 144C of the Act on 21/04/2022. Further, a Final Assessment order came to be passed u/s 143(3) r.w. Section 144C(13) of the Act on 15/05/2022, wherein the Ld. A.O. assessed the total income of the Assessee at Rs. 169,48,19,614/- as against the returned income of Rs. 1,66,06,01,230/-. Printed from counselvise.com 3 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT 3. In so far as Assessment Year 2018-19 is concerned, the DRP issued directions on 04/03/2022 under Section 144C (5) of the Act and order giving effect to the directions of DRP came to be passed u/s 144C of the Act on 21/04/2022 and a final assessment order came to be passed u/s 143(3) r.w. Section 144C(13) of the Act on 18/05/2022, wherein the Ld. A.O. assessed the total income of the Assessee at Rs. 2,33,54,82,920/- as against declared income of Rs. 2,31,92,15,760/-. 4. Aggrieved by the final assessment orders dated 15/05/2022 for Assessment Year 2017-18 and 18/05/2022 for Assessment Year 2018-19, Assessee preferred the captioned Appeals. 5. The Ld. Counsel for the Assessee at the outset submitted that the final assessment orders have been passed beyond the time limit specified u/s 144C (13) of the Act, therefore, the impugned assessment orders deserves to be set aside by the Tribunal. The Ld. Counsel for the Assessee relied on following judicial pronouncements:- a)Louis Dreyfus Company India (P.) Ltd. vs. DCIT [2024] 159 taxmann.com 244 (Delhi) b) PCIT vs. Fiberhome India (P.) Ltd. [2024] 159 taxmann.com 772 (Delhi) c) PCIT vs. Sterling Oil Resources Ltd. [2025] 171 taxmann.com 581 (Bombay) d) Rapiscan Systems (P.) Ltd. vs. ADIT [2025] 170 taxmann.com 753 (Telangana) e) CIT vs. Ramco Cements Ltd. [2025] 171 taxmann.com 306 (Madras) f) Hyundai Rotem Company Indian Project Offices vs. ACIT [2024] 169 taxmann.com 367 (Delhi - Trib.) g) Rio Tinto India Private Ltd. vs. ACIT ITA No.185/Del/2022 h) Microsoft Corporation (India) P. Ltd. vs. DCIT ITA No.1862/Del/2022 Printed from counselvise.com 4 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT 6. Per contra, the Ld. Department's Representative relying on the orders of the Lower authorities, submitted that the Final Assessment orders have been passed in accordance with law and the addition/disallowance have been made on the merits of the case. Further submitted that, since the Assessee is liable to pay the actual tax due, shall not be allowed to escape from tax liability on the technical grounds. Thus, sought for dismissal of the Appeals. 7. We have heard both the parties and perused the material available on record. It is the specific contention of the Ld. Senior Counsel appearing for the Ld. Assessee's Representative that as per u/s 144C(13) of the Act, the time limit prescribed for passing final assessment orders was 30/04/2022 in both the Assessment Years. However, the assessment orders have been passed on 15/05/2022 and 18/05/2022 respectively which are beyond the limitation prescribed u/s 144C(13) of the Act. The Ld. Assessee's Representative has filed the date chart reflecting the dates and events/particulars in both the years which is reproduced as under:- Printed from counselvise.com 5 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT 8. As per Section144C (13) of the Act, upon receipt of direction issued under Sub Section (5) of Section 144C by the DRP, the A.O. shall inconformity with the directions, complete, the assessment within one month from the end of month in which such direction received. For the sake of convenient Section 144C(13) is reproduced as under:- “Section 144C(13) : Upon receipt of direction issued under Sub Section (5), the Assessing Officer, shall, in conformity with the directions complete, notwithstanding anything to the contrary contained in Section 153 [or Section 153B], the assessment without providing any further opportunity of being heard to the Assessee, within one month from the end of the month in which such direction is received.” 9. The Jurisdictional High Court in the case of Louis Dreyfus Company India (P.) Ltd. Vs. Deputy Commissioner of Income tax reported in [2024] 159 taxmann.com 244(Delhi), held that the assessment order made beyond the period of one month from the end of the month in which directives of DRP were received by the Assessing Officer, amounts to an abject failure on the part of the Assessing Officer to comply with the mandatory time lines as incorporated in Section 144C(13) of the Act, accordingly, set aside the assessment order. Similar view has also been taken in the following Judgments:- Printed from counselvise.com 6 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT i) PCIT vs. Fiberhome India (P.) Ltd. [2024] 159 taxmann.com 772 (Delhi) ii) PCIT vs. Sterling Oil Resources Ltd. [2025] 171 taxmann.com 581 (Bombay) iii)Rapiscan Systems (P.) Ltd. vs. ADIT [2025] 170 taxmann.com 753 (Telangana) iv) CIT vs. Ramco Cements Ltd. [2025] 171 taxmann.com 306 (Madras) v) Hyundai Rotem Company Indian Project Offices vs. ACIT [2024] 169 taxmann.com 367 (Delhi - Trib.) vi) Rio Tinto India Private Ltd. vs. ACIT ITA No.185/Del/2022 vii) Microsoft Corporation (India) P. Ltd. vs. DCIT ITA No.1862/Del/2022 10. In view of the fact that the Final Assessment order should have been passed on or before 30/04/2022 as per Section 144C(13) of the Act in both the Assessment Years under consideration in the captioned Appeals, as the assessment orders have been passed on 15/05/2022 and 18/05/2022 respectively for Assessment Years 2017-18 and 2018-19, which are beyond the time limit prescribed u/s 144C(13) of the Act. Therefore, both the impugned assessment orders are hereby set aside. 11. In the result Appeals of the Assessee in ITA Nos. 1593/Del/2022 and 1594/Del/2022 are allowed. Order pronounced in the open court on 05th DECEMBER, 2025 Sd/- Sd/- (BRAJESH KUMAR SINGH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 05.12.2025 R.N, Sr.P.S* Printed from counselvise.com 7 ITA Nos. 1593 & 1594/Del/2022 Luminous Power Technologies Pvt. Ltd. Vs. DCIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com "