#Section 144C IT Act

The ITAT Delhi has ruled that the Supreme Court's Covid-19 limitation extension order does not apply to mandatory timelines under Section 144C(13) of the Income-tax Act, reinforcing that statutory compliance in tax assessments remains unaffected by judicial relief meant for courts and tribunals. This clarifies that tax authorities cannot rely on pandemic-era extensions to bypass strict procedural deadlines, impacting compliance strategies for corporates and tax practitioners alike.

ITAT Mumbai rules that draft assessment orders under Section 144C of the IT Act cannot legally include demand notices or penalty initiation, setting a precedent for procedural compliance in transfer pricing assessments. The decision invalidates assessment orders that bundle these elements, impacting multinational corporations and tax authorities.

ITAT Bangalore sets aside an assessment order for failing to adhere to Dispute Resolution Panel (DRP) directions under Section 144C(13) of the Income Tax Act. The ruling reinforces that final assessments must strictly conform to DRP mandates, impacting transfer pricing adjustments and statutory compliance for taxpayers.