Case Number: ITA 192/DEL/2021
Appellant: Astro Offshore Pte. Ltd., Singapore
Respondent: DCIT, Int. Tax. Circle-1(1)(1), New Delhi
Assessment Year: 2012-13
Result: 2012-13
Case Filed on: 2021-03-09
Order Type: Final Tribunal Order
Date of Order: 2021-12-09
Pronounced on: 2021-12-09
The appellant, Astro Offshore Pte. Ltd., a non-resident company incorporated in Singapore, filed an appeal against the final assessment order dated 12.01.2021 passed for the assessment year 2012-13. The appeal was heard by the Income Tax Appellate Tribunal, Delhi Bench ‘D’ on 02.12.2021.
The primary issue for consideration was whether the assessment order was barred by the limitation period prescribed under the Income-tax Act, 1961. The assessment for the impugned year was reopened under Section 147, and a draft assessment order was issued on 18.12.2019. However, the appellant did not file objections within the statutory period, leading to a dispute over the validity of the final assessment order.
The following key dates and events are relevant to the case:
The appellant, represented by Sh. Ved Jain, Advocate, and Sh. Ashish Goel, CA, contended that the final assessment order was passed beyond the prescribed period of limitation under Section 144C(4) and should be declared invalid. They relied on several judicial precedents supporting their claim that the order was time-barred.
The respondent, represented by Mrs. Anupama Anand, CIT(DR), argued that the delay in passing the final assessment order was due to the appellant’s late filing of objections before the DRP. She maintained that once objections were filed, the Assessing Officer was required to wait for the DRP’s directions, making the final order timely.
The Tribunal carefully reviewed the submissions and relevant legal provisions. It noted that under Section 144C, the appellant had thirty days to file objections to the draft assessment order. The appellant filed objections on 27.01.2020, beyond the prescribed period, which expired on 17.01.2020. Consequently, the Assessing Officer was required to complete the assessment within one month from the end of January 2020, i.e., by 28.02.2020.
The Tribunal found that the final assessment order was passed on 12.01.2021, well beyond the statutory period. It rejected the respondent’s argument, emphasizing that the statutory time limits are sacrosanct and must be strictly adhered to.
The Tribunal concluded that the final assessment order was invalid due to being passed beyond the prescribed period of limitation. It quashed the order dated 12.01.2021 and allowed the appeal in favor of the appellant.
Order Pronounced: 9th December 2021
Judges: Saktijit Dey, Judicial Member, and Dr. B.R.R. Kumar, Accountant Member
This decision underscores the importance of adhering to statutory timelines in tax assessments, reinforcing taxpayer rights against delayed assessments. It highlights the need for both taxpayers and tax authorities to comply with procedural requirements to ensure the validity of assessment orders.
Astro Offshore Pte. Ltd. vs. DCIT, Int. Tax. Circle-1(1)(1), Delhi – 2012-13 Late Assessment Order
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