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2021 (12) TMI 944 - HC - Income TaxAssessment u/s 144C - HELD THAT - In view of the CBDT Circular dated 30.04.2021, the objections filed by the petitioner before the DRP were clearly within the time. The same has now been heard on merit by the DRP. Therefore, keeping in view of the scheme of Section 144C of the Act we set aside the Impugned Final Assessment Order dated 30.06.2021, directing the respondent to act in accordance with the procedure stipulated in Section 144C.
Issues:
Challenge to Final Assessment Order under IT Act for AY 2017-18, Timeliness of objections filed before DRP, Jurisdiction of Assessing Officer, Compliance with CBDT Circular, Applicability of relevant judgments. Analysis: The petitioner challenged the Final Assessment Order dated 30.06.2021 under Section 143(3) read with Section(s) 144C(3) and 144B of the Income Tax Act, 1961 for AY 2017-18. The petitioner's objections were filed within the extended time limit as per CBDT Circular No. 08 of 2021 dated 30.04.2021, which allowed objections to be filed by 31.05.2021. The Transfer Pricing Officer made adjustments on international transactions, leading to a Draft Assessment Order dated 21.04.2021. The petitioner filed objections before the DRP on 27.05.2021, within the extended time frame. The petitioner contended that the Final Assessment Order was without jurisdiction as objections were filed within the permitted time, citing relevant judgments to support the argument. The respondent argued that since the petitioner failed to inform the Assessing Officer about filing objections before the DRP, the Assessing Officer proceeded to complete the assessment based on the Draft Assessment Order. The petitioner later informed that the DRP had heard the objections on merit on 30.11.2021. Citing a Bombay High Court judgment, the petitioner sought to set aside the Assessment Order until the DRP passed its order on the objections. The Court considered the submissions and the CBDT Circular, noting that the objections were filed within the extended time frame and had been heard on merit by the DRP. Relying on judgments from the Delhi High Court, Calcutta High Court, and Bombay High Court, the Court set aside the Final Assessment Order dated 30.06.2021, directing the respondent to follow the procedure outlined in Section 144C of the Act. The writ petition and pending applications were disposed of with no order as to costs.
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