INCOME TAX ACT, 1961

Section 144C Section 153

Transfer pricing - Order of DRP - Limitation - Draft assessment order

Assessee contended that the enhanced time limit of 3 years was provided in the statute in order to take care of the time that would be taken, inter alia, in the TPO passing the order, passing of draft assessment order, objections being filed before the DRP, disposal of objections by DRP and passing of assessment order. It was submitted that the provisions of section 144C do not give a go bye to the limitation enshrined in section 153. Held: The provisions of section 144C override the provisions of section 153. While rejecting the assessee's contention that the limitation in section 153 referred to passing of draft assessment order, it had to be held that section 144C gives a complete go bye to section 153 and the Act does not contemplate any limitation for passing of draft assessment order, which can be passed within a reasonable time.

Followed:Honda Trding Corporation v. CIT (2015) 61 Taxmann.com 233 (Del-Trib) : 2015 TaxPub(DT0 3901 (Del-Trib) and National Thermal Powers Co. Ltd. v. CIt (1998) 229 ITR 383 (Sc) : 1998 TaxPub(DT) 342 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 10A

SUBSCRIBE FOR FULL CONTENT