𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗜𝗻𝗱𝗶𝗮

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has d𝗲𝗹𝗲𝘁𝗲d 𝗱𝗲𝗺𝗮𝗻𝗱 𝗼𝗳 𝗥𝘀 𝟱𝟰𝟵 𝗖𝗿ore against 𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗜𝗻𝗱𝗶𝗮 citing limitation. The bench of Mahavir Singh, Vice President (Third Member) has sided with the Judicial Member. Relying on Section 144C(13) read with provisions of the Information Technology Act, 2000, he held that the receipt of DRP directions occurred when they were uploaded on the ITBA portal on April 1, 2022, making the last permissible date for passing the final assessment May 31, 2022 . Consequently, the order dated June 30, 2022, was held to be time-barred. The matter arose from an assessment order dated June 30, 2022, issued under Section 143(3) read with Section 144C(13) of the Act by the Deputy Commissioner of Income Tax, Circle 16(1), Delhi, following directions from the Dispute Resolution Panel (DRP). Microsoft India, represented by counsel Shri Nageswar Rao, contested the order on the preliminary ground that it was passed beyond the statutory time limit. Core Issue: Date of Receipt of DRP Directions The DRP issued its directions on March 23, 2022, which were uploaded on the Income Tax Business Application (ITBA) portal on April 1, 2022, and communicated to the Assessing Officer through speed post on April 4, 2022 . As per Section 144C(13), the Assessing Officer must complete the assessment “within one month from the end of the month” in which such directions are received. Microsoft argued that since the directions were received in April 2022, the assessment should have been completed by May 31, 2022. However, the order was passed only on June 30, 2022, rendering it void. Divergence of Opinion Within ITAT The Judicial Member (Shri Vikas Awasthy) agreed with the assessee, holding the assessment order to be time-barred and without jurisdiction . Conversely, the Accountant Member (Shri Brajesh Kumar Singh) dismissed Microsoft’s plea, ruling that the order was within limitation since the jurisdictional Assessing Officer formally received the DRP directions on May 20, 2022, thus making the June 30, 2022 order valid . Due to this split, the matter was referred to the Hon’ble President of ITAT under Section 255(4), who appointed Vice President Shri Mahavir Singh as Third Member. The tribunal allowed the appeal. Case Details Case Title: Microsoft Corporation (India) P. Ltd Versus Deputy Commissioner of Income-Tax Case No.: ITA NO.1862/DEL/2022 (A.Y.2017-18) Date: 04/09/2025 Counsel For Appellant: Nageswar Rao Counsel For Respondent: Rajesh Kumar Click Here To Read Order Read More: Can AO Review His Own Findings From Original Assessment Under New Reassessment Regime? Gujarat HC Answers

𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗜𝗻𝗱𝗶𝗮

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