2024 (5) TMI 691 - AT - Income Tax

Validity of final order passed u/s 144C(13) - Delay of 5 days in filing objections before DRP - DRP dismissed the objections on the ground that objections were not filed within 30 days time limit - Computation of time limit of 30 days which start from the date of receipt of the draft assessment order - HELD THAT - When these facts were confronted to CIT-DR, he could not controvert the fact as regards to receipt of order after 30 days from the date of draft assessment order, as contended by assessee. Even it was not contested by ld.CIT-DR that these details are not with either the AO or the DRP. Even the details are filed with the Tribunal now in assessee s paper-book and the ld.counsel pointed out the details and tried to make out a prima facie case. Without going into the merits and without deliberating anything on merits, in the given facts and circumstances, we restore this matter back to the file of the AO for fresh adjudication as per law. Accordingly, the order of AO and that of the DRP both are set aside and appeal restored back to the file of the AO for fresh adjudication. The appeal of the assessee is allowed for statistical purposes.

Summary

Issues involved:
The judgment deals with the final assessment order passed by the Income Tax Officer, International Taxation, Chennai u/s. 147 r.w.s. 144C(13) of the Income Tax Act, 1961. The issues involved include the addition of application of income and non-assessment of income related to payment to non-resident u/s. 195, payment of credit card bills, purchase of units of mutual fund, and purchase of immovable property.

Payment to Non-Resident u/s. 195:
The appellant raised objections regarding the treatment of payments as income in the assessment order, arguing that no reasons were provided for treating the payments as income. The appellant submitted various documents to support investments and expenses made, emphasizing that the delay in filing objections before the DRP was the reason the case was not decided on merits.

Delay in Filing Objections and Fresh Adjudication:
The appellant admitted a delay in filing objections before the DRP, which led to the objections being rejected. The appellant contended that the draft assessment order was received after the 30-day time limit specified by section 144C(2) of the Act. The Tribunal found that the details supporting the appellant's case were not with the AO or the DRP, and in light of this, the matter was restored back to the AO for fresh adjudication.

Conclusion:
The Tribunal allowed the appeal for statistical purposes, setting aside the orders of both the AO and the DRP. The matter was remanded back to the AO for fresh adjudication in accordance with the law. The decision was pronounced in open court on 30th April 2024 at Chennai.