2024 (8) TMI 1368 - HC - Income Tax

Validity of assessment order without considering objections raised - HELD THAT - The objections filed in Form 35A before the DRP are on record. The date stamp of the DRP on the cover letter evidences receipt of the objections on 27.10.2023. Therefore, the DRP undoubtedly received the objections before the expiry of the time limit for filing objections. As regards the obligation to submit a copy of such objections to the AO, an e-mail of 30.10.2023 is on record. In the said e-mail, the petitioner asserts that objections were filed before the DRP and that a copy of such objections could not be placed before the AO through the e-filing facility because such facility was not available. The objections were also attached to the e-mail. It appears that the AO has proceeded to issue the assessment order on account of being unaware that objections were submitted before the DRP. Consequently, the petitioner's total income has been determined in a sum of Rs. 97,50,98,539/- against the income of Rs. 54,36,39,810/- as per the petitioner's return. The conclusion that follows is that the petitioner is put to considerable prejudice without its objections being considered by the DRP. On this limited ground, the impugned assessment order dated 24.11.2023 is quashed. AO is directed to await the decision of the dispute resolution panel before issuing a fresh assessment order.

Summary

Issues:
Assessment order challenge for assessment year 2020-21 due to objections not considered by DRP.

Analysis:
The petitioner challenged an assessment order dated 24.11.2023 for the assessment year 2020-21 after filing a revised return of income declaring Rs. 54,36,49,810. The case underwent scrutiny assessment, and objections were filed before the dispute resolution panel (DRP) on 25.10.2023, received by DRP on 27.10.2023. The petitioner claimed that the portal did not allow placing objections before the Assessing Officer, supported by a portal screenshot and an email stating the e-filing facility was closed. However, the assessment order stated the petitioner did not file objections before the DRP, leading to the conclusion that the petitioner had no objection to the draft assessment order.

The petitioner argued that objections were timely filed before the DRP, and an email was sent to the Assessing Officer on 30.10.2023 informing about the objections. The petitioner sought to quash the assessment order and requested a fresh assessment after DRP examination. The senior standing counsel for the respondents pointed out that the draft assessment order was issued on 30.09.2023, giving the petitioner thirty days to file objections before the DRP. Since the objections were not placed before the Assessing Officer, the assessment order was issued.

The objections filed in Form 35A before the DRP were received on 27.10.2023, as evidenced by the date stamp. The petitioner's claim of timely submission of objections before the DRP was supported by an email on 30.10.2023, attaching the objections. The Assessing Officer issued the assessment order without knowledge of the objections submitted to the DRP, resulting in a significant difference in the petitioner's total income determination. Consequently, the court quashed the assessment order due to the petitioner's objections not being considered by the DRP.

The court directed the Assessing Officer to await the DRP's decision before issuing a fresh assessment order, disposing of the case without costs. The related motions were also closed in light of the judgment.