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TMI Blog2023 (3) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed order of assessment to the assessee. Assessee may file its acceptance or objection before the DRP and the AO. If assessee intimates its acceptance or no objections are received within 30 days, the AO shall complete the assessment. Where the DRP receives any objection from the assessee, it shall issue necessary directions to the AO to enable him to complete the assessment after considering the documents/material mentioned in Section 144C (6)(a) to (g) which includes the draft order. Before issuing the directions, the DRP may also make such further enquiry by any Income Tax Authority. Upon receipt of the directions from DRP under Sub- Section 5, the AO shall, in conformity with the directions, complete the assessment within one m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay of 65 days to consider following questions of law: 1. Whether on the facts and in the circumstances on the case, quashing the assessment order by concluding that there was no Draft Assessment Order passed under section 144C of the Act whereas there was indeed a draft assessment order passed by assessing authority which was served on to the assessee and further availing the same opportunity was provided through such draft assessment order, the assessee approached the DRP and the directions of the DRP were passed and thereafter the final Assessment order was passed? 2. Whether on the facts and in the circumstances on the case, the Tribunal is right in quashing final assessment order by relying on decisions of Hon ble Mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical advanced professional engineering and consultancy services. Assessee filed its return for A.Y. [Assessment Year] 2011-12, 2012-13 and 2013-14. Learned Advocates on both sides have adverted to facts in ITA No.427/2022. Therefore, illustratively the facts of the said appeal are recorded in this order. They have submitted that the questions of law are same in all three appeals. 6. For A.Y. 2011-12, Assessee has filed its return declaring income of Rs.17,92,72,000/-. Assessee received a notice of demand dated December 28, 2018 under Section 156 of the Income Tax Act, 1961 for Rs.82,99,46,321/- along with the draft assessment order under Section 143(3) of the Act passed by the ACIT (Intl. Taxn) [Assistant Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings when assessee had accepted the draft assessment order and filed its objection before the DRP is erroneous; the demand notice was not enforced; and any mistake or defect shall not invalidate the draft assessment order as per Section 292B of the Act and it is a curable defect. 10. With these submissions, Shri. Aravind prayed for allowing these appeals. 11. Opposing these appeals, Shri. Nageshwar Rao for the assessee, submitted that at the stage of passing the draft assessment order the ACIT had completed the assessment and issued a demand notice. This is contrary to law laid down in various authorities. Therefore, the impugned order does not call for any interference. 12. We have carefully considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) which includes the draft order. Before issuing the directions, the DRP may also make such further enquiry by any Income Tax Authority. 16. Upon receipt of the directions from DRP under Sub- Section 5, the AO shall, in conformity with the directions, complete the assessment within one month from the end of the month in which such direction is received. A notice of demand under Section 156 may be issued after completion of the assessment under Section 144C(13). 17. In Vijay Television Case, it is held as follows: 21. As rightly pointed out by the learned senior counsel for the petitioners, in the order passed on 26.03.2013, the second respondent even raised a demand as also imposed penalty. Such demand has to be raised only afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment is one integrated process involving not only the assessment of total income but also determination of the tax. In this case at the stage of passing the draft order, the ACIT had assessed the tax, passed a final order and also issued a demand notice. 21. Mr. Aravind also contended that the demand notice was not enforced. It is settled that demand notice stems out of an order of assessment and it is enforceable. It meets the assessee with civil consequences. The argument on behalf of the Revenue that the demand notice was not enforced is fallacious and noted only to be rejected. 22. We have carefully considered Section 292B of the Act. The mistake which the ACIT has done in passing the final order at the stage of draft order is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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