ITAT Delhi quashes Oracle India assessment as time-barred under Section 153 despite DRP route

Oracle India Private Limited was subjected to assessment proceedings for A.Y. 2007-08, culminating in a final assessment order passed on 30.10.2014 under Section 143(3) read with Section 144C of the Income-tax Act, 1961.

The assessee challenged the assessment on the ground that it was barred by limitation under Section 153, contending that the outer statutory time limit for completing the assessment had expired on 29.11.2013. An additional ground raising the issue of limitation was admitted. The Revenue opposed adjudication, arguing that the question concerning the interplay between Sections 144C and 153 was pending before the Supreme Court and sought deferral of the appeal. T=

Main Issue: Whether the final assessment order passed under Section 143(3) read with Section 144C after expiry of the time limit prescribed under Section 153 was barred by limitation and liable to be quashed.

Tribunal Ruled: The ITAT rejected the Revenue’s request to defer adjudication and held that, in the absence of any stay on the Madras High Court ruling in Roca Bathroom Products (P.) Ltd., the same was to be held as a binding precedent. The Tribunal held that Sections 144C and 153 are mutually inclusive and that the non-obstante clause in Section 144C does not override the statutory limitation under Section 153. Since the final assessment order dated 30.10.2014 was passed beyond the permissible time limit, it was held to be barred by limitation and void ab initio.

Therefore, the assessment was quashed. The Revenue’s appeal and the assessee’s connected appeal became infructuous and were dismissed.

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