Shelf Drilling J.t. Angel Limited,Being A Company Incorporated Underthe Laws Of Cayman Island Andhaving Its Address In India At4[Th] Floor, Schindler House,Main v. Assistant Commissioner Of Income Tax,(International Taxation), Circle – 4(2)(1),Mumbai, Having His Address Atroom

Digitallysigned byTRUSHATRUSHATUSHARTUSHARMOHITEMOHITEDate:2023.08.0418:46:56+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.2340 OF 2021 Shelf Drilling Ron Tappmeyer Limited,being a company incorporated underthe laws of Cayman Island andhaving its address in India at4[th] Floor, Schindler House,Main Street, Hiranandani Gardens,Powai, Mumbai – 400 076Versus1. Assistant Commissioner of Income Tax,(International Taxation), Circle – 4(2)(1),Mumbai, having his address atRoom No.1708, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. …. Petitioner 2. Principal Commissioner ofIncome Tax(International Taxation) – 4, Mumbai,having his address atRoom No.1704, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 3. Union of IndiaThrough Joint Secretary & Legal AdviserBranch Secretariat, Department of Legal Affairs,Ministry of Law and Justice,2[nd] Floor, Aayakar Bhavan, M.K.Road,New Marine Lines Mumbai – 400 020….. Respondents WITH WRIT PETITION NO.2661 OF 2021 Shelf Drilling J.T. Angel Limited,being a company incorporated underthe laws of Cayman Island andhaving its address in India at4[th] Floor, Schindler House,Main Street, Hiranandani Gardens,Powai, Mumbai – 400 076 …. Petitioner Versus 1. Assistant Commissioner of Income Tax,(International Taxation), Circle – 4(2)(1),Mumbai, having his address atRoom No.1708, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 2. Principal Commissioner ofIncome Tax(International Taxation) – 4, Mumbai,having his address atRoom No.1704, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 3. Union of IndiaThrough Joint Secretary & Legal AdviserBranch Secretariat, Department of Legal Affairs,Ministry of Law and Justice,2[nd] Floor, Aayakar Bhavan, M.K.Road,New Marine Lines Mumbai – 400 020….. Respondents WITH WRIT PETITION NO.3059 OF 2021 Shelf Drilling Trident XII Limited,being a company incorporated under the laws of Cayman Island andhaving its address in India at4[th] Floor, Schindler House,Main Street, Hiranandani Gardens,Powai, Mumbai – 400 076 …. Petitioner Versus 1. Assistant Commissioner of Income Tax,(International Taxation), Circle – 4(2)(1),Mumbai, having his address atRoom No.1708, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 2. Principal Commissioner ofIncome Tax(International Taxation) Circle– 4, Mumbai, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 3. Union of IndiaThrough Joint Secretary & Legal AdviserBranch Secretariat, Department of Legal Affairs,Ministry of Law and Justice,2[nd] Floor, Aayakar Bhavan, M.K.Road,New Marine Lines Mumbai – 400 020….. Respondents WITH WRIT PETITION NO.3060 OF 2021 Shelf Drilling Offshore Resources Limited II,being a company incorporated underthe laws of Cayman Island andhaving its address in India at4[th] Floor, Schindler House,Main Street, Hiranandani Gardens,Powai, Mumbai – 400 076…. Petitioner Versus 1. Assistant Commissioner of Income Tax,(International Taxation), Circle – 4(2)(1),Mumbai, having his address atRoom No.1708, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 2. Principal Commissioner ofIncome Tax(International Taxation) Circle-4, Mumbai, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 3. Union of IndiaThrough Joint Secretary & Legal AdviserBranch Secretariat, Department of Legal Affairs,Ministry of Law and Justice,2[nd] Floor, Aayakar Bhavan, M.K.Road,New Marine Lines Mumbai – 400 020….. Respondents Mr. J. D. Mistri, Senior Advocate a/w Mr. Nitesh Joshi i/b Mr. Atul K.Jasani, for Petitioners. Mr. Suresh Kumar a/w Ms.Samiksha Kanani for Respondents. CORAM:K.R. SHRIRAM, J &FIRDOSH P. POONIWALLA, J. RESERVED ON: JULY 25, 2023 PRONOUNCED ON: AUGUST 4, 2023 JUDGMENT (PER K.R.SHRIRAM, J): -Writ Petition No.2661 of 2021 (A.Y. 20142015) By consent petition is taken up for final hearing at this stage ofadmission. 2. Principal Commissioner ofIncome Tax(International Taxation) Circle-4, Mumbai, 17[th] Floor,Air India Building, Nariman Point,Mumbai – 400 021. 3. Union of IndiaThrough Joint Secretary & Legal AdviserBranch Secretariat, Department of Legal Affairs,Ministry of Law and Justice,2[nd] Floor, Aayakar Bhavan, M.K.Road,New Marine Lines Mumbai – 400 020….. Respondents Mr. J. D. Mistri, Senior Advocate a/w Mr. Nitesh Joshi i/b Mr. Atul K.Jasani, for Petitioners. Mr. Suresh Kumar a/w Ms.Samiksha Kanani for Respondents. CORAM:K.R. SHRIRAM, J &FIRDOSH P. POONIWALLA, J. RESERVED ON: JULY 25, 2023 PRONOUNCED ON: AUGUST 4, 2023 JUDGMENT (PER K.R.SHRIRAM, J): -Writ Petition No.2661 of 2021 (A.Y. 20142015) By consent petition is taken up for final hearing at this stage ofadmission. 1.Petitioner is a company incorporated under the relevant lawsof Cayman Island and headquartered in Dubai, United Arab Emirates.Petitioner is engaged in the business of shallow water drilling for clientsengaged in the oil and gas industry. Petitioner has been filing its Returnof Income under the Income Tax Act, 1961. The petition is concerned withAssessment Year 2014-15. 2.The parent group of Petitioner on a global basis had acquired38 rigs from one Transocean group sometime in late 2012 for which anAsset purchase Agreement had been executed. Pursuant to the saidagreement, Petitioner had acquired a rig by name J.T. Angel (the said rig)which was recorded in the books of account of Petitioner at USD 13.6million equivalent to Rs.74,22,94,527/- The said rig was already inoperation for a contract between Oil and Natural Gas Corporation (ONGC)and Transocean Drilling Services (India) Pvt. Ltd. The said rig was on abareboat charter basis. The arrangement continued upto July 2013 andfrom August 2013 to November 2013, the said rig was used under anomination contract for providing drilling services to ONGC. FromDecember 2013 to March 2014, the said rig required and underwent majorrepairs and refurbishment at the Pipavav Defence and OffshoreMohite 5/41 Engineering Company Limited. After the repairs and refurbishment, thesaid rig was deployed for performing drilling services for ONGC upto May2017. The agreement with ONGC was entered into by Shelf DrillingOffshore Services (India) Pvt. Ltd. (SDOSIPL) which sub-contracted the jobwork to Petitioner. During this period, Petitioner has computed its incomeon presumptive basis under Section 44BB of the Income-tax Act, 1961(“the Act”) for Assessment Year 2013-14 and from Assessment Years 2015-16 till date. For Assessment year 2014-15, i.e., the year underconsideration, after fulfilling the requisite conditions in Section 44BB(3) ofthe Act, Petitioner exercised the option available to it to compute itsincome other than on presumptive basis under Section 44BB. Petitionerhad also maintained books of account which have been audited inaccordance with Section 44AB. 3.On 29[th] November 2014 Petitioner filed its Return of Incomefor Assessment Year 2014-15 declaring a total loss of Rs.120,18,44,672/-.The loss had been arrived at by exercising its option not to be assessed onthe presumptive basis of taxation as per Section 44BB(3) of the Act andcomputing its income under the regular provisions of the Act. Petitioner’sReturn of Income for Assessment Year 2014-15 was selected for scrutiny byissue of notice dated 28[th] August 2015 under Section 143(2) of the Act. Inthe course of assessment proceedings, notices were issued under Section 3.On 29[th] November 2014 Petitioner filed its Return of Incomefor Assessment Year 2014-15 declaring a total loss of Rs.120,18,44,672/-.The loss had been arrived at by exercising its option not to be assessed onthe presumptive basis of taxation as per Section 44BB(3) of the Act andcomputing its income under the regular provisions of the Act. Petitioner’sReturn of Income for Assessment Year 2014-15 was selected for scrutiny byissue of notice dated 28[th] August 2015 under Section 143(2) of the Act. Inthe course of assessment proceedings, notices were issued under Section 142(1) of the Act along with detailed questionnaire. Petitioner submittedits response. Respondent no.1 passed draft assessment order dated 26[th]December 2016 invoking the provisions of Section 145 of the Act andrejected Petitioner’s books of account. Despite Petitioner having exercisedits option, Petitioner’s income from providing services in connection withprospecting for or extraction or production of mineral oils has beeneffectively computed under Section 44BB(1) of the Act, i.e., at 10% of itsgross receipts. Petitioner’s total income accordingly, was computed atRs.4,34,79,980/-. 4.Petitioner filed its objections before the Dispute ResolutionPanel (DRP) against draft assessment order, in accordance with Section144C of the Act. DRP did not accept Petitioner’s case and by an orderdated 28[th] September 2017 gave its direction. Based on that, Respondentno.1 passed a final assessment order dated 30[th] October 2017 underSection 143(3) read with Section 144C(13) of the Act. 5.Aggrieved by the said final assessment order, Petitioner filedan Appeal before the Income Tax Appellate Tribunal (ITAT). Petitionermade various submissions before the ITAT and after hearing the partiesITAT held that Respondent no.1 and DRP erred in rejecting the books ofaccount of Petitioner without considering the books and otherMohite 7/41 documentary evidences. By its order dated 4[th] October 2019, disposing theappeal, the ITAT remanded the matter to the Assessing Officer (AO) forfresh adjudication. 6.Since the ITAT had remanded the matter back to the AO,Petitioner, by a communication dated 5[th] February 2020, informed AOabout the order and requested for an early disposal of the same. This wasfollowed by oral requests. On 22[nd] February 2021, over one year later,Petitioner was called upon by Respondent no.1 to produce the details ofcontracts entered into by it and the reasons for incurring a loss duringassessment year 2014-15. Petitioner provided all documents and detailscalled for. By a notice dated 10[th] September 2021 issued by Respondentno.1 under Section 142(1) of the Act, Petitioner was directed to furnishdetails of month-wise operational expenses and income. Petitionerresponded vide letter dated 16[th] September 2021. Petitioner was againcalled upon to provide documents and details which Petitioner provided.Repeated notices were issued under Section 142(1) of the Act to Petitionerand finally Petitioner was issued a show cause notice dated 23thSeptember 2021 which Petitioner received at 9.42 a.m. allowing time upto3.30 p.m. on 24[th] September 2021 to respond. Various allegations weremade against Petitioner including non submission of documentaryevidence to show the state of the rig at the time of purchase, genuineness of the cost of acquisition etc. Various other allegations including notfollowing accounting standard-29 or non provision of TDS details were alsomade. Petitioner replied by a letter dated 24[th] September 2021 andreiterated its submissions made earlier. 7.Thereafter Respondent no.1 passed an assessment order dated28[th] September 2021 and it reads like a final assessment order. Respondentno.1, however, by a communication dated 29[th] September 2021 clarifiedthat it was only a draft order. of the cost of acquisition etc. Various other allegations including notfollowing accounting standard-29 or non provision of TDS details were alsomade. Petitioner replied by a letter dated 24[th] September 2021 andreiterated its submissions made earlier. 7.Thereafter Respondent no.1 passed an assessment order dated28[th] September 2021 and it reads like a final assessment order. Respondentno.1, however, by a communication dated 29[th] September 2021 clarifiedthat it was only a draft order. 8.Petitioner, to safeguard against the disability of the objectionsbeing treated as delayed, has filed its objections on 27[th] October 2021before the DRP. In the meanwhile, Petitioner also filed this petitionchallenging the impugned order dated 28[th] September 2021 on variousgrounds. The preliminary ground is that the limitation has expired on 30[th]September 2021 under Section 153(3) of the Act read with the provisionsof the Taxation and other laws (Relaxation and Amendment of CertainProvisions) Act, 2020 (hereinafter referred to as “the Relaxation Act”) andthe Notification issued thereunder. Therefore, no final assessment ordercan be passed in the present case as the same is time barred. In viewthereof, the Return of Income as filed by Petitioner should be accepted. 9.We decided to hear the parties first on the preliminaryobjection of limitation. If we are satisfied that the final assessment ordercannot be passed, we can dispose the petition with a direction to accept theReturn of Income filed by Petitioner. 10.Before we proceed further, the controversy in short betweenthe Department and Petitioner was under the provisions of Section 44BB ofthe Act which provides for presumption basis of computation of income inthe case of non- resident assessee engaged, interalia, in the business ofproviding services or facilities in connection with prospecting for orextraction or production of mineral oils (the said business). As per the said Section, 10% of the gross revenues as referredto in Sub-Section(2) thereof, is regarded as income from the said business.Sub-Section (3) thereof, enables an assessee to opt out of the saidpresumptive basis of taxation provided it keeps and maintains such booksof account and other documents as required under Section 44AA(2) andgets the same audited and furnishes a report as required under Section44AB of the Act. In a case where the assessee has opted out of the saidprovision, its income is to be computed on a net basis in accordance withSections 30 to 43D of the Act. It is an admitted position that Petitionerqualifies for computation of its income on the basis of Section 44BB of the Act. For the year under consideration, i.e., assessment year 2014-15, it hasopted out of the said provision and has fulfilled the conditions as requiredunder Sub-Section (3) thereof. In the first round of proceedings, the thenRespondent No.1, referring to various aspects in the assessment orderrejected Petitioner’s books of account by invoking the provisions of Section145 of the Act. He has thereafter estimated Petitioner’s income byeffectively following the computation methodology in Section 44BB(1) ofthe Act. In this regard, Petitioner had filed additional evidence before theDRP and also dealt with each and every aspect put against it byRespondent No.1 in draft assessment order. However, the DRP upheld theconclusion reached by Respondent No.1. On further appeal to the ITAT, itdiscussed each and every aspect raised by Respondent No.1 and on severalof such issues specifically held that the view taken by Respondent No.1 andupheld by the DRP was erroneous and unsustainable in law. The ITATfinally held that (a) Petitioner had prepared its books of account includingfinancial statements in accordance with generally accepted accountingprinciples; (b) that the said financial statements complied in all materialrespects with the accounting standards notified under the Companies Act;(c) that the accounts were audited which was also evident from the TaxAudit Report furnished along with the Return of Income; (d) for thepurposes of invoking Section 145(3) of the Act the burden to show that thebooks of account were incomplete or incorrect was on Respondent No.1; (e)Respondent No.1 and the DRP had erred in rejecting the books ofaccount without considering the books and other documentary evidences;and (f) in view thereof, to provide a further opportunity to RespondentNo.1, the issue was remanded back for fresh adjudication. Despite requestsby Petitioner from 05.02.2020 to 22.02.2021, (over one year), theproceedings for giving effect to the ITAT’s Order were not taken up till22.02.2021. After calling for certain general information which had beencomplied with by Petitioner, a notice under Section 142(1) of the Act wasissued on 10.09.2021, almost seven months later. From 10.09.2021 up to20.09.2021, four notices under Section 142(1) have been issued, i.e., on10.09.2021, 11.09.2021, 15.09.2021 and 20.09.2021 seeking variousinformation and documents. The proceeding finally culminated into ashow-cause notice which was issued on 23.09.2021 (received at 3:04 pm)directing Petitioner to file its response thereto by 3.30 pm on 24.09.2021,i.e., in 24 hours. A bare perusal of the impugned order shows that asubstantial part of the aspects which have been found against Petitioner,were raised on 20.09.2021 and 23.09.2021. Further, there are severalaspects which do not find any reference in the notices issued byRespondent No.1. Finally, the impugned order dated 28.09.2021 has beenpassed rejecting Petitioner’s books of accounts and effectively computingPetitioner’s income based on the computation methodology provided inSection 44BB(1), despite the fact that Petitioner had opted out from the same. 11. Mr. Mistri submitted that:- same. 11. Mr. Mistri submitted that:- (a) Limitation as provided in Section 153 is the outermost limitprovided for passing the final assessment order under the Act.The draft assessment order, the DRP’s order on the objectionsraised by the assessee and the final assessment order ought tohave been passed within the said limitation, i.e., by 30[th]September 2021. Division Bench of the Hon’ble Madras HighCourt has upheld this position in the case of Commissioner ofIncome-tax v. Roca Bathroom Products (P) Ltd.[1] [Roca-Bathroom (DB)]. The Division Bench had confirmed the lawlaid down by a learned single Judge of Madras High Court inRoca Bathroom Products (P) Ltd. vs. Dispute Resolution Panel-2, Bangalore 2 [Roca Bathroom (SB)][2]provided for passing the final assessment order under the Act.The draft assessment order, the DRP’s order on the objectionsraised by the assessee and the final assessment order ought tohave been passed within the said limitation, i.e., by 30[th]September 2021. Division Bench of the Hon’ble Madras HighCourt has upheld this position in the case of Commissioner ofIncome-tax v. Roca Bathroom Products (P) Ltd.[1] [Roca-Bathroom (DB)]. The Division Bench had confirmed the lawlaid down by a learned single Judge of Madras High Court inRoca Bathroom Products (P) Ltd. vs. Dispute Resolution Panel-2, Bangalore 2 [Roca Bathroom (SB)][2] (b) In the present case, date of ITAT’s order was 4[th] October 2019when it was remanded to the Assessing Officer for denovoconsideration. The due date as per Section 153(3) read withproviso thereto provided that the limitation to pass fresh orderpursuant to the order of ITAT would expire on 31[st] March2021, i.e., 12 months from the end of the financial year inwhen it was remanded to the Assessing Officer for denovoconsideration. The due date as per Section 153(3) read withproviso thereto provided that the limitation to pass fresh orderpursuant to the order of ITAT would expire on 31[st] March2021, i.e., 12 months from the end of the financial year in 1(2022) 140 taxmann.com 304 (Madras)2(2021) 127 taxmann.com 332 (Madars)2(2021) 127 taxmann.com 332 (Madars) which the order was received by the specified authority. Inview of the Notification no.10/2021 dated 27[th] February 2021issued by the Central Board of Direct Taxes in the exercise ofthe powers conferred by Sub-Section (1) of Section 3 of theRelaxation Act and in partial modification of the earlierNotification, the time to pass the assessment order wasextended to 30[th] September 2021. The date on which the draftassessment order has been passed is 28[th] September 2021.Therefore, there was no possibility of passing any finalassessment order in the present case as the matter got timebarred on 30[th] September 2021. As the final assessment orderhas not been passed before the said date the proceedings arerendered to be now barred by limitation. In view thereof, theReturn as filed by Petitioner should be accepted. 12.We should note that the ground of limitation was inserted byway of an amendment on 12[th] July 2022 pursuant to liberty granted by thiscourt on 5[th] July 2022. No additional reply has been filed to the amendedpart. 13.Mr. Suresh Kumar submitted that the time limit given underSection 153 (3) of the Act would be in addition to the time prescribed under Section 144C of the Act. The period of time limit prescribed underSection 144C of the Act does not get subsumed in the time limit prescribedunder Section 153(3) of the Act. There is no time limit prescribed underSection 144C(1) of the Act. Nine months is prescribed only for DRP to passits order under Section 144C (12) of the Act and under Section 144C(13)of the Act one month is provided for the Assessing Officer to complete theassessment in conformity with the directions given by the DRP. Since thereis no time limit prescribed to pass the draft assessment order under Section144C(1) of the Act, where was the question of the assessment beingbarred under Section 153(3) of the Act. It does not arise. under Section 144C of the Act. The period of time limit prescribed underSection 144C of the Act does not get subsumed in the time limit prescribedunder Section 153(3) of the Act. There is no time limit prescribed underSection 144C(1) of the Act. Nine months is prescribed only for DRP to passits order under Section 144C (12) of the Act and under Section 144C(13)of the Act one month is provided for the Assessing Officer to complete theassessment in conformity with the directions given by the DRP. Since thereis no time limit prescribed to pass the draft assessment order under Section144C(1) of the Act, where was the question of the assessment beingbarred under Section 153(3) of the Act. It does not arise. 14.Section 144C of the Act was held to be a self-contained code by theearlier decision of the Hon'ble Madras High Court in the case of CIT vs SanminaSCI India (P.) Ltd[3]. The finding that Section 144C of the Act is a complete code isalso there in the decision of the single judge in Roca Bathroom (SB)(Supra).Once 144C of the Act is held to be a complete code then for all things dealt by it,it would prevail over other provisions including Section 153 of the Act. Hence thedecision of the Hon'ble High Court that the time limit given under Section 153 ofthe Act would prevail over and subsume the time limit prescribed under Section144C of the Act is per incuriam. It is settled law that a self-contained code/complete codetakes precedence for all things dealt by it. The Hon’ble Apex Courtand High Courts have reiterated this position. 15.The provision of Section 144C of the act with a non obstante clausewas inserted later than the incorporation of the non obstante clause in Section153 of the Act. Thus the Legislature was aware of the non obstante clause inSection 153 of the Act when the similar non obstante clause was inserted inSection 144C of the Act. The later non obstante clause shall prevail over thealready existing one. Mr. Suresh Kumar did not elaborate though. 16.Section 153 of the Act is a general provision dealing with allassessees and all types of orders as compared to Section 144C of the Act whichdeals only with regard to matters pertaining to ‘eligible assessees’ and orders arepassed wherein assessee has choice to file objections before the DRP. Longestablished jurisprudence holds, for matters covered by special provisions, theoverlapping general provisions must yield ground to the special provisions. Againthis was not elaborated. 17.It was further submitted by Mr. Suresh Kumar that one of theramifications of the interpretation put by the Hon'ble Madras High Court in RocaBathroom (DB)(Supra)that the time limit under Section 153 of the Act wouldnot refer to passing of draft order but to passing of the final order is that keymachinery provision becomes unworkable. The implication of the finding that thetime limits prescribed in Sections 144C of the Act and Section 153 of the Act aremutually inclusive and would not refer to passing of draft order but to passing of the final order is that most of the orders passed in past years after disposal ofobjections by the DRP are being held to be time barred. This is so as theconsistent understanding of officers of the Revenue as also of the Bar andassessees before this decision was that the limit applied to draft orders and notthe final orders. Thus such an interpretation that makes key machinery provisions becomeunworkable should be rejected as assessees do not have any vested right inprocedural aspects of ongoing assessments. 18.Thus finding of the Hon'ble Madras High Court in Roca Bathroom(DB) (Supra) that outer time limit in case of reference to TPO would be as perSection 153 of the Act and that the entire proceedings would have to beconcluded within the time limits prescribed thereinis per incuriam. 19.Before we proceed further it will be useful to reproduceSections 144C, 153 and said Notification under the Relaxation Act whichread thus: "144C. Reference to dispute resolution panel.— Thus such an interpretation that makes key machinery provisions becomeunworkable should be rejected as assessees do not have any vested right inprocedural aspects of ongoing assessments. 18.Thus finding of the Hon'ble Madras High Court in Roca Bathroom(DB) (Supra) that outer time limit in case of reference to TPO would be as perSection 153 of the Act and that the entire proceedings would have to beconcluded within the time limits prescribed thereinis per incuriam. 19.Before we proceed further it will be useful to reproduceSections 144C, 153 and said Notification under the Relaxation Act whichread thus: "144C. Reference to dispute resolution panel.— (1) The Assessing Officer shall, notwithstanding anything to thecontrary contained in this Act, in the first instance, forward adraft of the proposed order of assessment (hereafter in thissection referred to as the draft order) to the eligible assessee ifhe proposes to make, on or after the 1st day of October, 2009,any variation which is prejudicial to the interest of such assessee. (2) On receipt of the draft order, the eligible assessee shall,within thirty days of the receipt by him of the draft order,— (a) file his acceptance of the variations to the AssessingOfficer; or (b ) file his objections, if any, to such variation with,— (i)the Dispute Resolution Panel; and (ii)the Assessing Officer. (3) The Assessing Officer shall complete the assessment on thebasis of the draft order, if— (a) the assessee intimates to the Assessing Officer theacceptance of the variation; or (b) no objections are received within the period specified insub-section (2). (4) The Assessing Officer shall, notwithstanding anythingcontained in section 153 or 153B, pass the assessment orderunder sub-section (3) within one month from the end of themonth in which,— (a) the acceptance is received; or (b) the period of filing of objections under sub-section (2)expires. (5) The Dispute Resolution Panel shall, in a case where anyobjection is received under sub-section (2), issue such directions,as it thinks fit, for the guidance of the Assessing Officer to enablehim to complete the assessment. (6) The Dispute Resolution Panel shall issue the directionsreferred to in sub-section (5), after considering the following,namely:— (a) draft order; (b) objections filed by the assessee; (c) evidence furnished by the assessee; (d) report, if any, of the Assessing Officer, Valuation Officer or TransferPricing Officer or any other authority; (e) records relating to the draft order; (f) evidence collected by, or caused to be collected by, it; and (g) result of any enquiry made by, or caused to be made by, it. (7) The Dispute Resolution Panel may, before issuing any directions referredto in sub-section (5),— (a) make such further enquiry, as it thinks fit; or (b) cause any further enquiry to be made by any income-tax authority andreport the result of the same to it. (8) The Dispute Resolution Panel may confirm, reduce orenhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue anydirection under sub-section (5) for further enquiry and passingof the assessment order. Explanation :- For the removal of doubts, it is hereby declaredthat the power of the Dispute Resolution Panel to enhance thevariation shall include and shall be deemed always to haveincluded the power to consider any matter arising out of theassessment proceedings relating to the draft order,notwithstanding that such matter was raised or not by theeligible assessee. (9) If the members of the Dispute Resolution Panel differ inopinion on any point, the point shall be decided according to theopinion of the majority of the members. (10) Every direction issued by the Dispute Resolution Panel shallbe binding on the Assessing Officer. that it shall not set aside any proposed variation or issue anydirection under sub-section (5) for further enquiry and passingof the assessment order. Explanation :- For the removal of doubts, it is hereby declaredthat the power of the Dispute Resolution Panel to enhance thevariation shall include and shall be deemed always to haveincluded the power to consider any matter arising out of theassessment proceedings relating to the draft order,notwithstanding that such matter was raised or not by theeligible assessee. (9) If the members of the Dispute Resolution Panel differ inopinion on any point, the point shall be decided according to theopinion of the majority of the members. (10) Every direction issued by the Dispute Resolution Panel shallbe binding on the Assessing Officer. (11) No direction under sub-section (5) shall be issued unless anopportunity of being heard is given to the assessee and theAssessing Officer on such directions which are prejudicial to theinterest of the assessee or the interest of the revenue,respectively. (12) No direction under sub-section (5) shall be issued afternine months from the end of the month in which the draft orderis forwarded to the eligible assessee. (13) Upon receipt of the directions issued under sub-section (5),the Assessing Officer shall, in conformity with the directions,complete, notwithstanding anything to the contrary contained insection 153 or section 153B, the assessment without providingany further opportunity of being heard to the assessee, withinone month from the end of the month in which such direction isreceived. (14) ***** (15) For the purposes of this section,— (a)***** (b)"eligible assessee" means,— (i) any person in whose case the variation referred to in sub-section (1)arises as a consequence of the order of the Transfer Pricing Officerpassed under sub-section (3) of section 92CA; and (ii) any non-resident not being a company, or any foreign company.’ Time limit for completion of assessments and reassessments andrecomputation. 153. (1) No order of assessment shall be made under section143 or section 144 at any time after the expiry of twenty-onemonths from the end of the assessment year in which the Provided that in respect of an order of assessment relating tothe assessment year commencing on the 1st day of April,2018, the provisions of this sub-section shall have effect, as iffor the words "twenty-one months", the words "eighteenmonths" had been substituted: [Provided further that in respect of an order of assessmentrelating to the assessment year commencing on— (i) the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "twenty-onemonths", the words "twelve months" had been substituted; (ii) the 1st day of April, 2020, the provisions of this sub-section shall have effect, as if for the words "twenty-onemonths", the words "eighteen months" had been substituted:] [Provided also that in respect of an order of assessmentrelating to the assessment year commencing on [***] the 1st day of April, 2021, the provisions of this sub-section shall have effect, as if for the words "twenty-onemonths", the words "nine months" had been substituted:] [Provided also that in respect of an order of assessmentrelating to the assessment year commencing on or after the1st day of April, 2022, the provisions of this sub-section shallhave effect, as if for the words "twenty-one months", thewords "twelve months" had been substituted.] [(1A) Notwithstanding anything contained in sub-section (1),where a return under sub-section (8A) of section 139 isfurnished, an order of assessment under section 143 or section144 may be made at any time before the expiry of [twelve]months from the end of the financial year in which suchreturn was furnished.] [***] the 1st day of April, 2021, the provisions of this sub-section shall have effect, as if for the words "twenty-onemonths", the words "nine months" had been substituted:] [Provided also that in respect of an order of assessmentrelating to the assessment year commencing on or after the1st day of April, 2022, the provisions of this sub-section shallhave effect, as if for the words "twenty-one months", thewords "twelve months" had been substituted.] [(1A) Notwithstanding anything contained in sub-section (1),where a return under sub-section (8A) of section 139 isfurnished, an order of assessment under section 143 or section144 may be made at any time before the expiry of [twelve]months from the end of the financial year in which suchreturn was furnished.] (2) No order of assessment, reassessment or recomputationshall be made under section 147 after the expiry of ninemonths from the end of the financial year in which the notice Provided that where the notice under section 148 is served onor after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words "nine months", thewords "twelve months" had been substituted. (3) Notwithstanding anything contained in sub-sections (1) [,(1A)] and (2), an order of fresh assessment [or fresh orderunder section 92CA, as the case may be,] in pursuance of anorder under section 254 or section 263 or section 264, settingaside or cancelling an assessment, [or an order under section92CA, as the case may be], may be made at any time beforethe expiry of nine months from the end of the financial year inwhich the order under section 254 is received by the PrincipalChief Commissioner or Chief Commissioner or PrincipalCommissioner or Commissioner or, as the case may be, theorder under section 263 or section 264 is passed by the[Principal Chief Commissioner or Chief Commissioner orPrincipal Commissioner or Commissioner, as the case maybe] : Provided that where the order under section 254 is receivedby the Principal Chief Commissioner or Chief Commissioner orPrincipal Commissioner or Commissioner or, as the case maybe, the order under section 263 or section 264 is passed by the[Principal Chief Commissioner or Chief Commissioner orPrincipal Commissioner or Commissioner, as the case may be,]on or after the 1st day of April, 2019, the provisions of thissub-section shall have effect, as if for the words "nine months",the words "twelve months" had been substituted. [(3A) Notwithstanding anything contained in sub-sections (1),(1A), (2) and (3), where an assessment or reassessment ispending on the date of initiation of search under section 132or making of requisition under section 132A, the periodavailable for completion of assessment or reassessment, as thecase may be, under the said sub-sections shall,— (a) in a case where such search is initiated under section 132or such requisition is made under section 132A; (b) in the case of an assessee, to whom any money, bullion,jewellery or other valuable article or thing seized or (c) in the case of an assessee, to whom any books of accountor documents seized or requisitioned pertains or pertain to, orany information contained therein, relates to, be extended by twelve months.] (4) Notwithstanding anything contained in [sub-sections (1),(1A), (2), (3) and (3A)], where a reference under sub-section(1) of section 92CA is made during the course of theproceeding for the assessment or reassessment, the periodavailable for completion of assessment or reassessment, as thecase may be, under the said [sub-sections (1), (1A), (2), (3)and (3A)], shall be extended by twelve months. (b) in the case of an assessee, to whom any money, bullion,jewellery or other valuable article or thing seized or (c) in the case of an assessee, to whom any books of accountor documents seized or requisitioned pertains or pertain to, orany information contained therein, relates to, be extended by twelve months.] (4) Notwithstanding anything contained in [sub-sections (1),(1A), (2), (3) and (3A)], where a reference under sub-section(1) of section 92CA is made during the course of theproceeding for the assessment or reassessment, the periodavailable for completion of assessment or reassessment, as thecase may be, under the said [sub-sections (1), (1A), (2), (3)and (3A)], shall be extended by twelve months. (5) Where effect to an order under section 250 or section 254or section 260 or section 262 or section 263 or section 264 isto be given by the Assessing Officer [or the Transfer PricingOfficer, as the case may be,] wholly or partly, otherwise thanby making a fresh assessment or reassessment [or fresh orderunder section 92CA, as the case may be], such effect shall begiven within a period of three months from the end of themonth in which order under section 250 or section 254 orsection 260 or section 262 is received by the Principal ChiefCommissioner or Chief Commissioner or PrincipalCommissioner or Commissioner, as the case may be, the orderunder section 263 or section 264 is passed by the [PrincipalChief Commissioner or Chief Commissioner or PrincipalCommissioner or Commissioner, as the case may be] : Provided that where it is not possible for the Assessing Officer[or the Transfer Pricing Officer, as the case may be,] to giveeffect to such order within the aforesaid period, for reasonsbeyond his control, the Principal Commissioner orCommissioner on receipt of such request in writing from theAssessing Officer [or the Transfer Pricing Officer, as the casemay be], if satisfied, may allow an additional period of sixmonths to give effect to the order: Provided further that where an order under section 250 orsection 254 or section 260 or section 262 or section 263 orsection 264 requires verification of any issue by way ofsubmission of any document by the assessee or any otherperson or where an opportunity of being heard is to beprovided to the assessee, the order giving effect to the said order under section 250 or section 254 or section 260 orsection 262 or section 263 or section 264 shall be made withinthe time specified in sub-section (3). [(5A) Where the Transfer Pricing Officer gives effect to anorder or direction under section 263 by an order under section92CA and forwards such order to the Assessing Officer, theAssessing Officer shall proceed to modify the order ofassessment or reassessment or recomputation, in conformitywith such order of the Transfer Pricing Officer, within twomonths from the end of the month in which such order of theTransfer Pricing Officer is received by him.] (6) Nothing contained in sub-sections (1) [, (1A)] and (2)shall apply to the following classes of assessments,reassessments and recomputation which may, subject to theprovisions of 51[sub-sections (3), (5) and (5A)], be completed— (i) where the assessment, reassessment or recomputation ismade on the assessee or any person in consequence of or togive effect to any finding or direction contained in an orderunder section 250, section 254, section 260, section 262,section 263, or section 264 or in an order of any court in aproceeding otherwise than by way of appeal or referenceunder this Act, on or before the expiry of twelve months fromthe end of the month in which such order is received orpassed by the [Principal Chief Commissioner or ChiefCommissioner or] Principal Commissioner or Commissioner,as the case may be; or (i) where the assessment, reassessment or recomputation ismade on the assessee or any person in consequence of or togive effect to any finding or direction contained in an orderunder section 250, section 254, section 260, section 262,section 263, or section 264 or in an order of any court in aproceeding otherwise than by way of appeal or referenceunder this Act, on or before the expiry of twelve months fromthe end of the month in which such order is received orpassed by the [Principal Chief Commissioner or ChiefCommissioner or] Principal Commissioner or Commissioner,as the case may be; or (ii) where, in the case of a firm, an assessment is made on apartner of the firm in consequence of an assessment made onthe firm under section 147, on or before the expiry of twelvemonths from the end of the month in which the assessmentorder in the case of the firm is passed. (7) Where effect to any order, finding or direction referred toin sub-section (5) or sub-section (6) is to be given by theAssessing Officer, within the time specified in the said sub-sections, and such order has been received or passed, as thecase may be, by the income-tax authority specified thereinbefore the 1st day of June, 2016, the Assessing Officer shallgive effect to such order, finding or direction, or assess,reassess or recompute the income of the assessee, on or before (8) Notwithstanding anything contained in the foregoingprovisions of this section, sub-section (2) of section 153A orsub-section (1) of section 153B, the order of assessment orreassessment, relating to any assessment year, which standsrevived under sub-section (2) of section 153A, shall be madewithin a period of one year from the end of the month of suchrevival or within the period specified in this section or sub-section (1) of section 153B, whichever is later. (9) The provisions of this section as they stood immediatelybefore the commencement of the Finance Act, 2016, shallapply to and in relation to any order of assessment,reassessment or recomputation made before the 1st day ofJune, 2016: Provided that where a notice under sub-section (1) of section142 or sub-section (2) of section 143 or section 148 has beenissued prior to the 1st day of June, 2016 and the assessmentor reassessment has not been completed by such date due toexclusion of time referred to in Explanation 1, suchassessment or reassessment shall be completed in accordancewith the provisions of this section as it stood immediatelybefore its substitution by the Finance Act, 2016 (28 of 2016). Explanation 1.—For the purposes of this section, in computingthe period of limitation— (i) the time taken in reopening the whole or any part of theproceeding or in giving an opportunity to the assessee to bere-heard under the proviso to section 129; or (ii) the period during which the assessment proceeding isstayed by an order or injunction of any court; or (iii) the period commencing from the date on which theAssessing Officer intimates the Central Government or theprescribed authority, the contravention of the provisions ofclause (21) or clause (22B) or clause (23A) or clause (23B) [,under clause (i) of the first proviso] to sub-section (3) ofsection 143 and ending with the date on which the copy of theorder withdrawing the approval or rescinding the notification, as the case may be, under those clauses is received by theAssessing Officer; or (iv) the period commencing from the date on which theAssessing Officer directs the assessee to get his accountsaudited [or inventory valued] under sub-section (2A) ofsection 142 and— (a) ending with the last date on which the assessee isrequired to furnish a report of such audit [or inventoryvaluation] under that sub-section; or (b) where such direction is challenged before a court, endingwith the date on which the order setting aside such directionis received by the Principal Commissioner or Commissioner; or as the case may be, under those clauses is received by theAssessing Officer; or (iv) the period commencing from the date on which theAssessing Officer directs the assessee to get his accountsaudited [or inventory valued] under sub-section (2A) ofsection 142 and— (a) ending with the last date on which the assessee isrequired to furnish a report of such audit [or inventoryvaluation] under that sub-section; or (b) where such direction is challenged before a court, endingwith the date on which the order setting aside such directionis received by the Principal Commissioner or Commissioner; or (v) the period commencing from the date on which theAssessing Officer makes a reference to the Valuation Officerunder sub-section (1) of section 142A and ending with thedate on which the report of the Valuation Officer is receivedby the A