2018 (10) TMI 1810 - HC - Income Tax

Interim order of stay - Draft assessment u/s 144C(1) - HELD THAT - There is no dispute to the fact that the draft assessment order was passed by the respondent on 31.12.2017 and the present writ petition was filed by the petitioner on 17.01.2018, which is admittedly, within 30 days period stipulated for filing such petition before the Dispute Resolution Panel. This Court has entertained the present writ petition and granted an interim order of stay on 22.01.2018 and the said interim order is still in force. Therefore, this Court is of the view that without expressing any view on the merits of the contentions raised by both parties, it is better for the petitioner to agitate the matter before the Dispute Resolution Panel by filing appropriate petition under Section 144C(2)(b), so that the said authority will consider the petition and pass appropriate orders on merits and in accordance with law. Accordingly, this writ petition is disposed of, by granting liberty to the petitioner to file such petition before the Dispute Resolution Panel on or before 12.11.2018. If any such petition is filed within the time stipulated supra, the Dispute Resolution Panel shall consider the same and pass appropriate orders on merits and in accordance with law without reference to the period of limitation, in view of the fact that this writ petition is pending before this Court all these days with interim order.

Summary

Issues: Challenge to draft assessment order under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. Entitlement to agitate matter before Dispute Resolution Panel within 30 days of draft assessment order.

Analysis:
The petitioner challenged the draft assessment order dated 31.12.2017 under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. The High Court entertained the writ petition and granted an interim stay order on 22.01.2018. The petitioner raised various contentions on the merits of the draft assessment order. However, the petitioner's counsel acknowledged the provisions under Section 144C(2) of the Income Tax Act, 1961, requesting the liberty to approach the Dispute Resolution Panel and the Assessing Officer.

The respondent filed a counter affidavit addressing the merits of the matter. The Court refrained from expressing any view on the merits, considering the petitioner's intention to approach the Dispute Resolution Panel. The respondent's counsel highlighted the necessity for the petitioner to file a petition before the Dispute Resolution Panel within 30 days from the date of the draft assessment order to seek resolution.

Acknowledging that the writ petition was filed within the stipulated 30-day period from the date of the draft assessment order, the Court emphasized the importance of allowing the petitioner to present the matter before the Dispute Resolution Panel. The Court directed the petitioner to file the necessary petition under Section 144C(2)(b) before the Dispute Resolution Panel by 12.11.2018. It was clarified that the Dispute Resolution Panel should evaluate the petition and issue appropriate orders on merits and in compliance with the law, disregarding the period of limitation due to the pendency of the writ petition with an interim stay order. The Court disposed of the writ petition without costs, concluding the matter with the liberty granted to the petitioner to address the Dispute Resolution Panel within the specified timeframe.