How ATP works for ATO Item

I have the following scenario:
We have ATO item which gets manufactured by CM.
CM ships the items to a 3PL warehouse via Internal Sales Order (we use drop ship by CM to customer, as well as we stock standard models at 3PLs & depots).
In order to ship to a customer, we create a Sales Order with 3PL as a shipping warehouse. If on-hand quantity is not available in 3PL warehouse for ATO configured item, how ATP will behave? Will it consider infinite supply as defined in the time fence?
Note: in both CM & 3PL inventory organization, ATO item setup is “Buy”.

Another note: we don't use ASCP / GOP.
Thanks.

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