{"id":42137,"date":"2024-05-04T12:44:25","date_gmt":"2024-05-04T07:14:25","guid":{"rendered":"https:\/\/itatonline.org\/digest\/colgate-palmolive-india-ltd-v-acit-2023-149-taxmann-com-177-103-itr-51-snmumtrib\/"},"modified":"2024-05-04T12:44:25","modified_gmt":"2024-05-04T07:14:25","slug":"colgate-palmolive-india-ltd-v-acit-2023-149-taxmann-com-177-103-itr-51-snmumtrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/colgate-palmolive-india-ltd-v-acit-2023-149-taxmann-com-177-103-itr-51-snmumtrib\/","title":{"rendered":"Colgate-Palmolive (India) Ltd. v ACIT (2023) 149 taxmann.com 177\/ 103 ITR 51 (SN)(Mum)(Trib)"},"content":{"rendered":"

The provisions of section\u00a092CA(3A)\u00a0of the\u00a0Act\u00a0prescribes the date for passing an order u\/s\u00a092CA(3)\u00a0as \u201cany time before 60 days prior to the date on which<\/u> the period of limitation referred to in s.\u00a0153 expires\u201d. According to the provisions of s.\u00a0153(1)\u00a0r.w.s.\u00a0153(4), the time limit for passing of the order for under s.\u00a0153\u00a0was available up to 31.03.2015. Thus, the time limit for passing order u\/s\u00a092CA(3)\u00a0was expiring on or before 29.01.2015. Held, (i) that the TPO for the AY\u00a02011-12<\/u>\u00a0had passed the order u\/s\u00a092CA(3)\u00a0of the Act on 30.01.2015. For AY\u00a02012-13<\/u>\u00a0also, the limitation for passing an assessment order u\/s\u00a0153\u00a0expired on 24 months from the end of the AY, i. e., on 31.01.2015. The extension of 12 months was granted as a reference was made u\/s 92CA and therefore the limitation period was further extended from 31.3.2015 to 31.3.2016. The 60-day period after counting the one day in the month of January, 29 days of February being a leap year and 31 days of March 2016, expired on 31.1.2016. Therefore, the outer time limit for passing the order of the TPO was up to 30.1.2016. The order of the TPO was passed on 31.01.2016. For AY 2013-14,<\/u>the TPO passed an order u\/s\u00a092CA(3)\u00a0on 01.11.2016. Based on this the draft assessment order u\/s\u00a0143(3)\u00a0r.w.s. 144C(1)\u00a0was passed on 31.12.2016. The assessee filed objections before the DRP and directions were issued on 27.09.2017. Based on this the final assessment order u\/s\u00a0143(3)\u00a0was passed on 31.10.2017. According to \u00a0S. 153(1)\u00a0the assessment order should have been passed within 21 months from the end of the AY in which the income was first assessable. Therefore, the time-limit for passing the assessment order expired on 31.12.2015. However, as there was a reference made to the TPO for passing an order under section\u00a092CA\u00a0a further period available for completion of the assessment was to be extended by 12 months. Thus, the time-limit for passing order under section 143(3) was available up to 31.12.2016. According to S. 92CA(3A)\u00a0the TPO should have passed the order at any time before 60 days prior to the date on which the time-limit for making the order of the assessment expires. The time of 60 days was available till 31.10.2016. The order of the TPO was passed on 1.11.2016. Therefore, the orders passed by the TPO for all three years were beyond the time-limit and were not sustainable. Pfizer Healthcare India P. Ltd. v. JT. CIT\u00a0[2021 433 ITR 28<\/a>\u00a0(Mad)\u00a0followed.<\/p>\n

\u00a0(ii)That if the order passed by the TPO was beyond prescribed time-limit, the assessee would not remain an \u201celigible assessee\u201d in terms of S.\u00a0144C(15)(b)\u00a0of the Act and hence the extended time of 12 months was also not available. Therefore, even the regular assessment order passed by the AO u\/s\u00a0143(3)\u00a0read with S.\u00a0144C(13)\u00a0of the Act dated 15.02.2016 also became barred by limitation and was not sustainable.(AY.2011-12, 2012-13, 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"

S. 144C : Reference to dispute resolution panel-Assessment-Limitation-Eligible assessee-International Transactions-Orders Passed by TPO Beyond limitation period-therefore, Assessee is Not an \u201cEligible Assessee\u201d as per 144C(15)(b) of the Act-extended time period of 12 months not available-as a consequence thereof, Regular Assessment Order was also barred by Limitation and not sustainable.[S.92CA(3), 144C(15)(b),153]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42137","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aXD","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=42137"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42137\/revisions"}],"predecessor-version":[{"id":42138,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42137\/revisions\/42138"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}