2021 (7) TMI 1298 - HC - Income Tax

Validity of assessment u/s 144C (3) - objections to draft assessment order were filed and the same were pending disposal with the DRP - HELD THAT - Respondents states that in view of the facts of the present case, she has no objection if the present matter is remitted to the DRP. The final assessment order dated 30th June, 2021 as well as the demand notice of ₹ 56,76,09,018/- (Rupees Fifty Six Crores Seventy Six Lakhs Nine Thousand and Eighteen only) issued under Section 156 of the Act for the assessment year 2017-18 is quashed and the matter is remitted to the DRP for consideration under Section 144(C) of the Act. Thereafter, the assessment order shall be passed in accordance with the procedure stipulated under Section 144B(1) (xxix) to (xxxi) as well as Section 144(C) of the Act.

Summary

Issues:
Challenging final assessment order and demand notice under Income Tax Act, 1961.

Analysis:
The petitioner filed a writ petition challenging the final assessment order dated 30th June, 2021, passed under Section 143(3) read with Sections 144C(3) and 144B of the Income Tax Act, 1961, along with the demand notice of ?56,76,09,018 issued for the Assessment Year 2017-18. The petitioner sought directions to the respondents not to take any further action based on the impugned assessment order and demand notice. The petitioner highlighted that due to the lockdown in Delhi, objections to the draft assessment order could not be filed within the stipulated 30 days and were filed late on 21st June, 2021. The petitioner relied on Circular No.12 of 2021 and Notification No.74/2021 dated 25th June 2021, which extended the time limits for certain compliances. The petitioner argued that the objections were filed within the extended time limit provided in the circular. The petitioner contended that the assessment order was passed erroneously without considering the extended time limits and while objections were pending with the Dispute Resolution Panel (DRP). The respondent accepted notice and did not object to remitting the matter to the DRP.

The court, after considering the submissions, quashed the final assessment order dated 30th June, 2021, and the demand notice of ?56,76,09,018 issued under Section 156 of the Act for the assessment year 2017-18. The court remitted the matter to the DRP for consideration under Section 144(C) of the Act. The court directed that the assessment order should be passed in accordance with the procedure stipulated under Section 144B(1) (xxix) to (xxxi) as well as Section 144(C) of the Act. Consequently, the writ petition along with the pending application was disposed of, and the order was to be uploaded on the website and forwarded to the learned counsel through e-mail for reference.