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Tax Publishers Limitation under section 153(3) does it encompass Section 144C *Facts:* Assessee a non-resident entity in the operation of vessels for oil/mineral exploration had offered their income under section 44BB(3) by reporting a loss of Rs. 120 crores. Revenue's rejected the loss reported by the assessee and without rejecting the books and audited information presumed income under section 44BB and held 10% as the presumptively taxable income. This case travelled to the DRP who upheld the views of the AO to which assessee further appealed to ITAT. ITAT remanded the case to AO for fresh adjudication. Subsequently, revenue did not action the case and after a gap of almost a year revenue sent notices and made an urgent draft assessment order once again presumptively taxing the assessee on 28-09-2021. Assessee was not even given adequate time to respond to their various notices as revenue realized the time limit imposed by law viz 30-09-2021 in this case. The ground of the writ was that the overall limitation under section 153(3) would prevail over Section 144C DRP proceedings as well and since there was no final order passed before 30-09-2021 in this case the return filed by the assessee itself ought to have been accepted to be correct. Revenue's counter was that Section 144C is a self-contained code and both the Sections 144C and 153 start with a non-obstante clause thus the self-contained code ought to take over the limit imposed under section 153(3). Held in favour of the assessee that revenue cannot say that the limit of 12 months extended in this case to 18 months until 30-09-2021 was not circumscribing Section 144C as such a reading will whittle down the purpose as to why limitations have been imposed by law. It is for the revenue to act expeditiously and not at conveniences and whims. *Ed. Note:* The decision is path breaking as lower courts have held that Section 144C is a self contained code and thus its limitations are separate. Revenue's time playing antics did not find any room before the high court in this verdict. It is imminent that revenue will go up in appeal on this point of law as much is at stake for them if not a few thousand crores of taxes. *Case:* Shelf Drilling Ron Tappmeyer Ltd. v. Asstt. CIT & Ors. 2023 TaxPub(DT) 4732 (Bom-HC)

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Limitation under section 153(3) does it encompass Section 144C

Facts:

Assessee a non-resident entity in the operation of vessels for oil/mineral exploration had offered their income under section 44BB(3) by reporting a loss of Rs. 120 crores. Revenue's rejected the loss reported by the assessee and without rejecting the books and audited information presumed income under section 44BB and held 10% as the presumptively taxable income. This case travelled to the DRP who upheld the views of the AO to which assessee further appealed to ITAT. ITAT remanded the case to AO for fresh adjudication. Subsequently, revenue did not action the case and after a gap of almost a year revenue sent notices and made an urgent draft assessment order once again presumptively taxing the assessee on 28-09-2021. Assessee was not even given adequate time to respond to their various notices as revenue realized the time limit imposed by law viz 30-09-2021 in this case. The ground of the writ was that the overall limitation under section 153(3) would prevail over Section 144C DRP proceedings as well and since there was no final order passed before 30-09-2021 in this case the return filed by the assessee itself ought to have been accepted to be correct. Revenue's counter was that Section 144C is a self-contained code and both the Sections 144C and 153 start with a non-obstante clause thus the self-contained code ought to take over the limit imposed under section 153(3).

Held in favour of the assessee that revenue cannot say that the limit of 12 months extended in this case to 18 months until 30-09-2021 was not circumscribing Section 144C as such a reading will whittle down the purpose as to why limitations have been imposed by law. It is for the revenue to act expeditiously and not at conveniences and whims.

Ed. Note: The decision is path breaking as lower courts have held that Section 144C is a self contained code and thus its limitations are separate. Revenue's time playing antics did not find any room before the high court in this verdict. It is imminent that revenue will go up in appeal on this point of law as much is at stake for them if not a few thousand crores of taxes.

Case: Shelf Drilling Ron Tappmeyer Ltd. v. Asstt. CIT & Ors. 2023 TaxPub(DT) 4732 (Bom-HC)