ITAT Delhi Quashes ExxonMobil Gas India’s Assessments as Time-Barred; Revenue Appeal Dismissed

Background

The Delhi Bench “I” of the Income Tax Appellate Tribunal has quashed the final assessment orders passed against ExxonMobil Gas (India) Private Limited for Assessment Years (AYs) 2007–08 and 2008–09, holding them to be barred by limitation. The core issue before the Tribunal was whether the time limit for passing a final assessment under Section 144C(13) of the Income Tax Act, 1961, must be read independently or in conjunction with Section 153. The assessee relied on the Madras High Court ruling in CIT v. Roca Bathroom Products (P) Ltd., arguing that Sections 144C and 153 are “mutually inclusive” and that the outer limitation under Section 153 governs even assessments routed through the Dispute Resolution Panel (DRP). The Department, however, contended that Section 144C is a self-contained code with distinct timelines and urged the Tribunal to defer adjudication, citing pendency of the issue before a larger Bench of the Supreme Court following a split verdict in Shelf Drilling Ron Tappmeyer Ltd.

Tribunal’s Findings and Final Outcome

Rejecting the Revenue’s preliminary objection, the Tribunal followed its coordinate Bench decision in Li & Fung (India) Pvt. Ltd., noting that the Roca Bathroom ruling had not been stayed and its ratio continued to hold the field. On facts, the Tribunal observed that the final assessment orders were passed beyond the statutory deadlines—27 January 2011 for AY 2007–08 (due by 31 December 2010) and 23 February 2012 for AY 2008–09 (due by 31 December 2011). Consequently, the assessments were quashed as time-barred. Since the assessee succeeded on the legal issue of limitation, the Tribunal declined to examine other grounds. The Revenue’s appeal for AY 2008–09 was dismissed, with liberty reserved to both parties to revive the matter if the Supreme Court later settles the issue contrary to Roca Bathroom.