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TMI Blog2018 (4) TMI 1897X X X X Extracts X X X X X X X X Extracts X X X X ..... withdrawing appeal No.970/CHNY/2017. Accordingly, Appeal of assessee in ITA No.970/CHNY/2017 is dismissed as withdrawn. This leaves us with appeal No.971/CHNY/2017. 3. There are eight grounds taken by the assessee, of which ground No.1 assails the validity of assessment done on assessee for the impugned assessment year. As per the assessee, the order was passed beyond the time prescribed u/s.144C(2) read along with section 144C(4) of the Income Tax Act, 1961 (in short 'the Act'). 4. Facts apropos are that assessee engaged in the business of precision machining of components for various industries, had filed its return for the impugned assessment year admitting income of Rs. 9,61,980/- under normal provisions and Rs. 40,97,548/- under MAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch application. In other words, ld.DRP rejected the application filed by the assessee. Thereafter, on 22.03.2017, the ld. Assessing Officer passed an assessment order making an addition of Rs. 257,04,337/- to the income returned by the assessee, based on the recommendations made by the TPO. 5. Now, before us ld.A.R submitted that the assessment order passed by the AO on 22.03.2017 was much after the time period mentioned in sub-section (4) of section 144C of the Act. According to her, once the DRP had refused to consider the objections filed by the assessee, ld. Assessing Officer was obliged to pass the assessment order within one month from the end of month in which the outer time limit for filing objections u/s.144C(2) of the Act expired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPUTE RESOLUTION PANEL (1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee. (2) On receipt of the draft order, the eligible assessee shall, within thirty days of the receipt by him of the draft order,- (a) file his acceptance of the variations to the Assessing Officer ; or (b) file his objections, if any, to such variation with,- (i) the Dispute Resolution Panel ; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it thinks fit ; or (b) clause any further enquiry to be made by any income-tax authority and report the result of the same to it. (8) 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 subsection (5) for further enquiry and passing of the assessment order. (9) If the members of the Dispute Resolution Panel differ in opinion on any point, the point shall be decided according to the opinion of the majority of the members. (10) Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer. (11) No direction under sub-section (5) shall be issued unless an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Transfer Pricing Officer passed under sub-section (3) of section 92CA ; and (ii) any foreign company." Vide sub-section (2) of above Section and eligible assessee has an option to file, either his acceptance of the variation proposed in the draft assessment order to the ld. Assessing Officer, or if he objects to file objections. If he chooses to file objections, it has to be filed before the DRP, and the ld. Assessing Officer. There are two sub-clauses for sub-section(2) of Sec.144C of the Act, viz. clause-(a) & clause-(b). These sub-clauses are joined by the term " or " . This is a disjunctive expression. Thus, the assessee has to choose one of two options, either to file acceptance or to file his objection. If the assessee choos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the objections was filed by the assessee before the ld. Assessing Officer only on 30.03.2017, and even this was beyond the limit of 30 days. Thus, assessee did not satisfy any of the conditions mentioned in sub-section (2) of section 144C. Non-filing of objections within the time period allowed under 30 days will automatically attract application of sub-section (4) of Section 144C of the Act. Sub-section (4) clearly say that an assessment order has to be passed within one month from the end of the month when the period of filing of objections under sub-section (2) expires. Contention of the ld.D.R is that the order of the DRP rejecting the application filed by the assessee was a direction of the DRP and hence time limit set out in sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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