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TMI Blog2020 (4) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds of appeal vide an application dated 19-08-2019 and argued the said additional grounds are legal grounds praying to declare that the AO erred in passing draft assessment order without following the mandate as laid down u/s. 144C of the Act and consequentially to quash the final assessment order. He submits that no new facts are required to be examined and prayed to admit the additional ground Nos. 5 and 6. Upon hearing both the parties, we find that the issue is covered by the order of this Tribunal and we admit the additional ground Nos. 5 and 6 for adjudication. Therefore, we proceed to hear the additional grounds as preliminary issue. 3. The brief facts emanating from the record for the purpose of above said preliminary issue are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final assessment order lacked validity and is to be quashed. 5. The ld. AR submits that the issue is squarely covered by the decision of this Tribunal and placed on record compilation of orders at page Nos. 1 to 113. On perusal of the order dated 29-08-2019 of this Tribunal in the case of DCIT Vs. Atlas Copco (India) Limited in ITA No. 649/PUN/2013 and ITA No. 1726/PUN/2014 for A.Ys. 2008-09 and 2009-10 wherein this Tribunal held the final assessment order becomes null and void if the notice of demand is issued on the basis of draft assessment order. 6. The facts of the case therein was the assessee filed return of income declaring Rs. 1,44,59,01,250/- and AO passed draft assessment order dated 29-12-2011 u/s. 143(3) r.w.s. 144C(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order passed as on the date of issuance of demand notice dated 26-03-2014. Therefore, as held by the Hon'ble Supreme Court in the case of Kalyan Kumar Ray (supra) the assessment is one integrated process involving not only the assessment of the total income but also the determination of the tax, it means to say that the draft assessment order is necessarily followed by on final assessment order. In our opinion once a notice of demand is issued, the AO becomes functus officio in so far as the completion of assessment is concerned, therefore, in the present case, the final assessment order dated 28-04-2014 lacked validity and it is liable to be quashed. 8. Coming to the decision of Hon'ble High Court of Madras in the case of Vijay Te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, to such variation with the Dispute Resolution Panel and the AO. 11. Sub-section (3) of section 144C reads the AO shall complete the assessment, if the assessee acceptance of the variation or no objections are received within the period specified in sub-section (2). 12. Sub-section (4) of section 144C explains that the AO shall complete assessment within one month from the end of the month in which the acceptance is received or the period of filing of objections under subsection (2) expires. 13. It is clear that the AO did not await for specified thirty days for receiving intimation from assessee for acceptance of variation or for no objections and issued demand notice u/s. 156 of the Act. It is also on record the final assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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