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TMI Blog2021 (8) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... table orders to provide such opportunities as contemplated. Pertinent point that the Assessee would get an opportunity to raise all the points raised in the objections before the Assessing Officer as well as before the Appellate Authority. However, such a submission has no force as the valuable right conferred under the Act to the Assessee can never be taken away. In the event of glaring violation of the provisions of the Act, the High Court has to provide an appropriate relief to the aggrieved persons.In the event of failure, the High Court would be failing in its constitutional duty to restore the valuable right of an Assessee conferred under the Income Tax Act. The principles of natural justice being an integral part of Article 14 of the Constitution of India, the direct violation of the provisions in this regard is a ground for entertaining a writ petition. Where the violation of principles of natural justice is raised and interpretation of the provisions of the Income Tax Act is imminent, then it is necessary to entertain the writ petition to ascertain the nature of rights conferred to an Assessee or the Assessing Officer under the provisions of the Act. While doing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessee, are adjudicated, the same would be sufficient for the purpose of disposing of the other writ petition also. 6. The facts in general are not in dispute. The issue raised is that whether the Dispute Resolution Panel is competent to reject the objections on account of non-appearance of the Assessee on the hearing date. 7. The learned Senior Counsel, appearing on behalf of the writ petitioner, drawn the attention of this Court with reference to the order impugned passed by the Dispute Resolution Panel [herein after referred to as the 'DRP', in short]. The said order impugned would reveal that the case was fixed for hearing on 20.11.2015 at 11.30 A.M. before the Dispute Resolution Panel (DRP-2). On the date of hearing nobody appeared on behalf of the Assessee. No request for adjournment was received. This shows the Assessee is not interested in pursuing the objections filed before DRP. Therefore, the objections filed by the Assessee deserve to be rejected. Accordingly, the objections are being rejected. The directions of this Panel, as above, are hereby communicated to the Assessee and the Departmental Authorities concerned as per the provisions of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a valuable opportunity provided both to the Assessee as well as to the Assessing Officer. Either of the parties may get guidance for the purpose of completion of the assessment proceedings. Thus, the importance attached to the DRP under the Income Tax Act, at no circumstances, be undermined. 13. The Statute contemplates, on receipt of objections from the Assessee, the DRP has to issue certain directions as it thinks fit for the guidance of the Assessing Officer. Thus, an adjudication before the DRP is a valuable opportunity to the Assessee, provided under the Income Tax Act and such a right cannot be taken away without complying with the provisions of the Act, in its letter and spirit. 14. The Courts are not empowered to add any language to the Statute and the language adopted is to be interpreted constructively, keeping in mind the purpose and object of the Income Tax Act. When the Income Tax Act contemplates a right to an Assessee, then such a right must be allowed to be exercised in the manner prescribed under the Income Tax Act. Thus, if an objection is filed under Section 144-C(2)(b) of the Act, the said objection is to be dealt with in the manner prescribed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 144-C of the Act, also states that The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order. Explanation. -For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by the eligible assessee . 21. Sub-section (10) of Section 144-C of the Act, makes it clear that every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer . Therefore, sub-section (7) of Section 144-C of the Act, provides discretion to the DRP to make such further enquiry as it thinks fit. The term, makes it further clear that the enquiry is discretionary and may be done on need basis. If the DRP is of an opinion that further enquiry is required, then the DRP may at its discretion to conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessee as well as the Assessing Officer are getting an opportunity to adjudicate certain issues for the purpose of solution and the correctness of the decisions. Therefore, the opportunity contemplated under the Act for the Assessee as well as the Assessing Officer must be allowed to be exercised in complete form, so as to reach the purpose and object for which the DRP is constituted under the Act itself. It is a valuable right provided both to the Assessee as well as to the Assessing Officer. Thus, the DRP, being a Quasi Judicial Authority, is bound to pass orders as it thinks fit only on merits and such Quasi Judicial Authorities are not empowered to reject the objections merely by stating that the Assessee had not appeared before the DRP. Even in case of nonappearance, the matters are to be decided on merits, as the objections in writing filed by the petitioner is very much available on record before the DRP. Rejecting the objections on the ground of non-appearance may be an easy way out for the disposal of the objections, however, the spirit and the intention of Legislation, at no circumstances, be diluted and this apart, the Quasi Judicial Functionaries are not empowered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers conferred under sub-section (14) of Section 144-C of the Act. The Central Board of Direct Taxes make Rules to regulate the procedures of the DRP. 32. Rule 7 of the Income Tax (Dispute Resolution Panel) Rules, 2009 provides hearing of objections. 33. Rule 10 of the Income Tax (Dispute Resolution Panel) Rules, 2009 deals with issue of directions. Sub-clauses (1) to (3) of Rule 10 of the Income Tax (Dispute Resolution Panel) Rules, 2009 enumerate that (1) On the date fixed for hearing or on any other date to which the hearing may be adjourned, if the eligible Assessee or his authorized representative do not appear, or when they appear, upon hearing the objections, the panel may, within the specified time, issue such directions as it deems proper. (2) While hearing the objections, the panel shall not be confined to the grounds set forth in the objections but shall have power to consider any matter or grounds arising out of the proceedings. (3) On conclusion of hearing, the panel shall issue directions within the specified period . 34. Therefore, the manner in which the objections are to be considered by the DRP, are well defined both under the Income Tax Act as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nity to raise all the points raised in the objections before the Assessing Officer as well as before the Appellate Authority. However, such a submission has no force as the valuable right conferred under the Act to the Assessee can never be taken away. In the event of glaring violation of the provisions of the Act, the High Court has to provide an appropriate relief to the aggrieved persons. In other words, if the point of jurisdiction or enforcement of right directly hitting the provisions of the Income Tax Act, then the High Court has to entertain a writ petition. In the event of failure, the High Court would be failing in its constitutional duty to restore the valuable right of an Assessee conferred under the Income Tax Act. The principles of natural justice being an integral part of Article 14 of the Constitution of India, the direct violation of the provisions in this regard is a ground for entertaining a writ petition. Where the violation of principles of natural justice is raised and interpretation of the provisions of the Income Tax Act is imminent, then it is necessary to entertain the writ petition to ascertain the nature of rights conferred to an Assessee or the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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