2023 (11) TMI 764 - HC - Income Tax

Validity of assessment u/s 143(3) r.w.s 144C(1) and s.144B - Draft assessment order OR final assessment order - demand notice issued u/s 156 of the Act as well as the notices issued for initiation of penalty proceedings under Section 274 r.w.s. 270A, 271AA, 271G 271BA - revenue, says that he has received instructions to the effect that the impugned assessment order can be treated as a draft assessment order, with an opportunity being given to the writ petitioner to file objections within the statutory period i.e., 30 days - HELD THAT - The impugned assessment order shall be treated as a draft assessment order. Consequently, it will shed attributes of a final assessment order, such as the reference to the initiation of penalty proceedings. As a result, such parts of the order shall stand excised The petitioner will have liberty to file its objections within 30 days of receipt of the order passed today. The writ petition is disposed of, in the aforesaid terms. Consequently, the interim order dated 19.05.2021, which was made absolute on 10.01.2023, shall stand vacated.

Summary

Issues involved:
The issues involved in the judgment are challenging the assessment order dated 20.04.2021 passed by the Assessing Officer under Section 143(3) read with Sections 144C(1) and 144B of the Income Tax Act, 1961 for Assessment Year 2017-18, as well as the demand notice issued under Section 156 of the Act and the notices for initiation of penalty proceedings under Section 274 read with Sections 270A, 271AA, 271G & 271BA of the Act.

Assessment Order Challenge:
The writ petition sought to challenge the assessment order dated 20.04.2021 passed by the Assessing Officer under the Income Tax Act, 1961 for Assessment Year 2017-18. The petitioner contended that although the order seemed like a draft assessment order, it actually had attributes of a final assessment order, thus emasculating the statutory remedy of filing objections with the Dispute Resolution Panel. The respondent agreed to treat the impugned assessment order as a draft assessment order, allowing the petitioner to file objections within the statutory period of 30 days. Consequently, the order was treated as a draft assessment order, removing references to the initiation of penalty proceedings, and the petitioner was granted liberty to file objections within 30 days.

Disposition of the Writ Petition:
The writ petition was disposed of with the impugned assessment order being treated as a draft assessment order, allowing the petitioner to file objections within 30 days. The interim order dated 19.05.2021, made absolute on 10.01.2023, was vacated, and parties were directed to act based on the digitally signed copy of the order.