Case Summary: FiberHome India Private Limited vs. DCIT, Circle-2(1), Delhi

Introduction

This article provides a detailed summary of the case between FiberHome India Private Limited and the Deputy Commissioner of Income Tax, Circle-2(1), Delhi, held at the Income Tax Appellate Tribunal, Delhi Bench ‘I’, New Delhi. The case number ITA No. 812/Del/2022 concerns the assessment year 2017-18 and highlights significant aspects of the Income Tax Act, 1961, pertaining to timelines and procedural requirements.

Background

FiberHome India Private Limited, the appellant, is a company engaged in the manufacturing of telecommunication equipment and providing maintenance and other allied services in India. The case arises from the appeal filed by the company against the order dated 26.03.2022 passed by the Assessing Officer (AO) under sections 143(3) read with 144C(13) of the Income Tax Act, 1961.

Key Dates and Proceedings

• Date of filing return: 29.11.2017
• Date of order by the Transfer Pricing Officer (TPO): 22.01.2021
• Date of draft order by AO: 03.03.2022
• Date of order by the Dispute Resolution Panel (DRP): 16.12.2021
• Date of Assessment Order: 26.02.2022

Legal Issue

The primary issue under consideration was whether the final order passed by the Assessing Officer was within the statutory time limits prescribed under the Income Tax Act, 1961. Specifically, the contention revolved around the applicability of the provisions of Section 144C concerning the forwarding of draft orders and finalization of assessment orders.

Judgment

After hearing the arguments from both parties and examining the material on record, the tribunal found that the final order passed by the AO was beyond the period of limitation as provided under Section 144C of the Income Tax Act, 1961. Consequently, the order was declared null and void.

Conclusion

The appeal filed by FiberHome India Pvt. Ltd. was allowed, marking a significant interpretation of procedural timelines under the Income Tax Act, 1961. The decision underscores the critical nature of adhering to statutory deadlines in assessment proceedings.

The case sets a precedent for future cases involving procedural irregularities and the enforceability of assessment orders beyond prescribed timelines.

Order Pronounced

The order in the case ITA No. 812/Del/2022 was pronounced in the open court on 13/03/2023, allowing the appeal in favor of FiberHome India Pvt. Ltd. and dismissing the Stay Application as infructuous.

Summary of Case ITA No. 812/Del/2022: FiberHome India Pvt. Ltd. vs. DCIT, Circle-2(1), Delhi