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TMI Blog2021 (12) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of limitation prescribed under section 144C(4)(b) of the Act. Contention of DR that before the Assessing Officer could have passed the final assessment order, the assessee filed objections before learned DRP, i.e., on 27.01.2020 and the Assessing Officer had no other option but to wait for the directions of the DRP, in our view, is unacceptable and has to be rejected at the threshold. Combined reading of the provisions contained under Section 144C(1), (2), (3) and (4) makes it abundantly clear that there is no compulsion on the AO to wait beyond the period of limitation prescribed under the statute for completing the final assessment, anticipating that the assessee would be filing an objection before the DRP. The period of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued under Section 148 of the Act and subsequent statutory notices, the assessee repeatedly sought adjournments. Therefore, the Assessing Officer proceeded to frame draft assessment order under Section 147 read with section 144C(1) of the Act on 18.12.2019, determining the total income of the assessee at ₹ 45,17,870/-. 4. Against the draft assessment order so passed, the assessee raised objections before learned Dispute Resolution Panel (DRP)- 1, New Delhi, on 27.01.2020. While dealing with the objections of the assessee, learned DRP noticed that the draft assessment order was served on the assessee on 18.12.2019 through email. Of course, a copy of the draft assessment order was also dispatched to the assessee through the post. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have passed the final assessment order, the assessee filed objection before the learned DRP on 27.01.2020. She submitted, once the objection was filed before learned DRP, the Assessing Officer had no option but to wait for the directions of learned DRP before passing the final assessment order. She submitted, since the learned DRP gave directions vide order dated 11.12.2020, the final assessment order passed on 12.01.2021 is in time. 7. We have considered rival submissions in the light of decisions relied upon and perused the materials on record. Before deciding the issue at hand, the following chronological dates and events needs to be kept in mind: 18.12.2019 Draft Assessment order passed under Section 147/144/144C(1) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , any variation 95[***] 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 (ii) the Assessing Officer. (3) The Assessing Officer shall complete the assessment on the basis of the draft order, if- (a) the assessee intimates to the Assessing Officer the acceptance of the variation; or (b) no objections are received within the period specified in sub-section (2). (4) The Assessing Officer shall, notwithstand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er must pass the final assessment order under sub-section (3) of section 144C within one month from the end of the month in which the acceptance by the assessee of the variation proposed in the draft assessment order is received or period of filing of objection under sub-section (2) of section 144C expires. 8. Thus, a reading of the aforesaid provisions as a whole, would make it clear that the assessee has thirty days time from the date of receipt of draft assessment order to file objections before the DRP. Whereas, sub-sections (3) and (4) of section 144C make it clear that in case, the Assessing Officer does not receive any objections filed before the DRP within the period prescribed under sub-section (2) of section 144C of the Act, ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear that there is no compulsion on the Assessing Officer to wait beyond the period of limitation prescribed under the statute for completing the final assessment, anticipating that the assessee would be filing an objection before the DRP. The period of limitation prescribed under sub-sections (2) and (4) is sacrosanct and has to be strictly followed, both, by the assessee as well as the Revenue. Therefore, the final assessment order having been passed beyond the period of limitation prescribed under Section 144C(4)(b) of the Act, has to be declared invalid. Accordingly, we do so. The decisions relied upon by the learned counsel for the assessee are clearly in support of the view expressed hereinabove. Resultantly, the impugned assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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