9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 1062 - HC - Income TaxAssessment order u/s 144C - title of the order reads as Draft Assessment Order u/s 143(3) r.w.s. 144C - As submitted the impugned assessment order will be treated as a draft assessment order and that the consequential notice of demand and notice for initiation of penalty proceedings shall stand withdrawn - HELD THAT - Writ petition is disposed of with the following directions (i) The assessment order dated 26.03.2021 shall be treated as a draft assessment order. (ii) The petitioner will have 30 days time to file its objections with the DRP. The aforementioned timeframe will commence from the date of the receipt of a copy of this order. (iii) The notice of demand and the notice for initiation of penalty proceedings shall stand withdrawn. (iv) In case the order passed by the DRP is adverse to the interest of the petitioner, it will have liberty to assail the same as per law.
Issues:
Violation of provisions of the Income Tax Act, 1961 in passing a final assessment order instead of a draft assessment order under Section 144C (1) of the Act. Analysis: The petitioner contended that the impugned order dated 26.03.2021 was contrary to the provisions of the Income Tax Act, 1961 and had been passed in breach of natural justice principles. The order, titled as a "Draft Assessment Order u/s 143(3) r.w.s. 144C of the I.T. Act, 1961," was argued to be a final assessment order based on the Transfer Pricing Officer's input. The Assessing Officer's statement in paragraph 6 of the order indicated the finality of the assessment, including the initiation of penalty proceedings. The petitioner's counsel highlighted discrepancies between the order's title and its content, supported by references to the notice of demand and penalty notice. The court prima facie agreed with the petitioner's contention, noting a possible violation of the Act's provisions. The Assessing Officer was expected to pass an order under Section 144 C (1) of the Act initially, enabling the petitioner to raise objections with the Dispute Resolution Panel if aggrieved. The respondent's counsel, Mr. Hossain, informed the court that the impugned assessment order would be treated as a draft assessment order, and the consequential notices of demand and penalty proceedings would be withdrawn. The petitioner's counsel agreed to this suggestion but requested the statutory 30-day period to file objections with the DRP as per the law. The court disposed of the writ petition with specific directions: treating the assessment order as a draft assessment order, granting the petitioner 30 days to file objections with the DRP from the date of the court order, withdrawing the notice of demand and penalty proceedings, and allowing the petitioner to challenge any adverse decision by the DRP as per the law. Consequently, the pending application was also disposed of in light of the court's directions.
|
