The assessee contended that the Transfer Pricing order passed under section 92CA(3) was barred by limitation, having been issued beyond the statutory time limit prescribed under section 92CA(3A) read with section 153.

The Revenue supported the action of the TPO, contending that the TP order was passed within the permissible time limits when viewed in light of the legislative intent to allow the Assessing Officer adequate time to complete the assessment proceedings.

It was argued that the statutory timeline under section 92CA(3A) mandates that the Transfer Pricing Officer must pass the order within 60 days prior to the date on which the limitation for completion of assessment expires.

It was argued that the statutory time limit prescribed for passing a TP order should not be interpreted in a rigid or inflexible manner, but rather in a manner that advances the object of the provisions governing assessment.

According to the assessee, the 60-day period prescribed under section 92CA(3A) is mandatory in nature and not merely directory

The Revenue further submitted that even assuming some delay, the TP order by itself does not give rise to any enforceable consequence, as it only forms the basis for the assessment and has no independent operation.

Consequently, it was submitted that the belated Transfer Pricing order was invalid in law, and therefore the entire transfer pricing adjustment made pursuant thereto was liable to be deleted.

According to the Revenue, no prejudice is caused to the assessee merely by the passing of the TP order, since it attains finality and enforceability only upon incorporation in the final assessment order.