2024 (3) TMI 1383 - HC - Income Tax

Validity of assessment order passed on objections being pending consideration before the Dispute Resolution Panel - HELD THAT - The Income-tax Act enables a person who receives a draft assessment order u/s 144C to file objections before the Dispute Resolution Panel. In the case at hand, the petitioner filed objections and there is evidence that the Dispute Resolution Panel received such objections on 12.01.2024. The impugned order is clearly subsequent thereto. As contended by respondents, the petitioner should have informed the National Faceless Assessment Unit that objections were filed before the Dispute Resolution Panel. Nonetheless, the issuance of the impugned assessment order while the objections of the petitioner are pending before the Dispute Resolution Panel causes great prejudice to the petitioner especially in view of the fact that the transfer pricing officer had directed variations in the income. For such reason, the impugned order calls for interference. Therefore, the impugned assessment order is quashed and, as a consequence, the assessing officer is directed to await the decision of the Dispute Resolution Panel before issuing a fresh assessment order.

Summary

The High Court of Madras quashed an assessment order dated 13.02.2024 in a writ petition where the petitioner had filed objections before the Dispute Resolution Panel but failed to inform the National Faceless Assessment Unit. The court directed the assessing officer to await the decision of the Dispute Resolution Panel before issuing a fresh assessment order.