ITAT Delhi Quashes Time-Barred Final Assessment Against BMW India [Read Order]:

ITAT Delhi Quashes Time-Barred Final Assessment Against BMW India [Read Order] BMW India Pvt. Ltd. filed an appeal challenging the final assessment order dated 28.06.2022, passed by the ACIT, Circle-1(1), Gurgaon, for AY 2011-12. The original assessment order was made on 19.02.2016 with additions on AMP expenditure, IT support services, and professional fees. On appeal, ITAT in January 2019 deleted the AMP adjustment but remanded issues relating to IT support services and legal/professional fees. Pursuant thereto, the TPO passed an order on 31.01.2021, rectified on 09.02.2021. Thereafter, the AO issued a draft order on 15.07.2021. The assessee objected before DRP, which gave directions on 28.04.2022. The AO then passed the final order on 28.06.2022. Issue Raised: Whether the final assessment order dated 28.06.2022 was barred by limitation under Section 144C(13) of the Income Tax Act. ITAT Held: The Tribunal held that once DRP directions were uploaded on 28.04.2022, the limitation expired on 31.05.2022. Relying on Delhi High Court rulings in Louis Dreyfus Company India Pvt. Ltd. and Fiberhome India Pvt. Ltd., as well as its own decision in Honda R&D India Pvt. Ltd., ITAT ruled that uploading on the ITBA portal constitutes service, triggering the statutory time limit. Since the assessment was completed only on 28.06.2022, it was time-barred and invalid. The impugned order was therefore quashed as barred by limitation, and the assessee’s appeal allowed. To Read Full Judgment, Download PDF Given Below