DRP Limitation Breach

The Delhi Bench of the Income Tax Appellate Tribunal quashed a final assessment order passed pursuant to Dispute Resolution Panel (DRP) directions on the ground of limitation. 

The Tribunal held that the timeline prescribed under Section 144C(13) of the Income-tax Act, 1961 is mandatory and requires the Assessing Officer to complete the assessment within one month from the end of the month in which DRP directions are received. 

Since the final assessment order was passed beyond the statutory period, it was held to be time-barred and liable to be set aside.