Date of Order: 9th August 2023
Appellant: Aero Club, New Delhi
Respondent: ACIT, Central Circle-49(1), New Delhi
This appeal by Aero Club challenges the order passed by the Assessing Officer on the 28th of October 2022 under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961. The case involves issues related to substantial Transfer Pricing adjustments and the disallowance of claims under sections 36(1)(va) and 43B of the Income Tax Act.
The appellant raised multiple grounds including the incorrect application of Transfer Pricing methodologies and the improper disallowance of contributions to Provident Fund and Employee State Insurance. The case also discussed the validity of the assessment order, arguing that it was passed out of the stipulated time frame, thus rendering it void ab initio.
The tribunal’s decision focused on the procedural aspects of the assessment, particularly whether the order was passed within the permissible time after receiving directions from the Dispute Resolution Panel. After reviewing the dates of communication and the legal requirements, the tribunal found that the final order was indeed passed out of the prescribed time limit, thus supporting the appellant’s contention that the order was time-barred and should be quashed.
The decision underscores the importance of adhering to statutory timelines in tax assessment processes and highlights the tribunal’s role in upholding procedural justice in tax matters.
The appeal was allowed on procedural grounds, setting aside the assessment order for being passed beyond the permissible time limit, emphasizing the critical nature of compliance with procedural norms in taxation.
Aero Club vs. ACIT, Central Circle-49(1), New Delhi – Assessment Year 2018-19
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