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TMI Blog2024 (6) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... e said provision also contemplates filing of such objection before the Assessing Officer as well. If such objection is filed in time, then the Dispute Resolution Panel alone shall proceed to decide the matter as provided under Section 144C(5) 6 of the said Act. DRP may confirm, reduce or enhance the variation proposed in the draft order. It is not in dispute that the DRP rejected the objection filed by the assessee on the ground that it is barred by limitation. Though, it is an order rejecting the objections but the Panel concluded that it does not find it fit for issuing directions for the guidance of the assessing officer for enabling him to complete the assessment. Once, the DRP has chosen to reject the objections on the ground of delay, it goes without saying that resultant position of such rejection is nothing but confirming the merits of draft order passed by the AO but in no way extends the limitation of passing the order under sub-section (4) of Section 144 of the Act. The final order should have been passed under sub- section (3)(b) of Section 144 read with sub-section (4)(b) of Section 144 of the Act. of the Act. There is nothing in the DRP order stating that the directio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was fiscal evasion. 2.3 The DRP, examined the objections of assessee and observed as follows; 4. DRP's Directions: The Panel has carefully considered the paperbook attached with Form 35A filed on 28.10.2022, the AO's draft order dated 23.09.2022 the AO's report dated 21.04.2023 and the assessee's e-mail dated 13.03.2023 along with the snapshot. 4.1 The Panel has observed that the assessee filed the objections before the Panel on 28.10.2022 against the AO's draft order dated 23.09.2022, after 5 days from the due date for filing of objections i.e. within 30 days from the date of receipts of the draft order by the assessee. The Panel has further observed that the assessee merely intimated the AO about filing of objections before the Panel on 20.10.2022, no documents/evidence/acknowledgement in this regard, was enclosed. The assessee further intimated the AO on 01.11.2022 about filing of objections before the Panel by enclosing copies of Form 35A filed dated 28.10.2022 before the Panel. The assessee has filed copy of snapshot which shows that some correspondence was made some Dhvani Poladia to ZADN audit on 20.10.2022 in respect of AY 2013-14. The assessee has f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated at sub-para (b) above. Accordingly, the AO in case does not receive the intimation for filing of objections before the panel as per the Income Tax Act, he must pass the final assessment order within one month from the end of the month/the period of filing of objections under sub-section (2) expires. It means that the AO in case does not receive a proper intimation for filing of objections before the Panel within 30 days from the date of receipt of draft order by the assessee, he must pass the final order within one month from the date, which was due for filing of objections as per sub-section (2) of the section 144C of the IT Act. 4.6 In the instant case, the AO has stated that he had received a simple intimation (without any acknowledgement) for filing of objections on 20.10.2022, 3 days before the due date for filing of objections before the Panel i.e. 23.10.2022. The AO has admitted that he had received an intimation (with acknowledgement dated 28.10.2022) on 01.11.2022 for the objections filed on 28.10.2022, 5 days after the due date for filing of objections before the Panel i.e., 23.10.2022. The AO has reported that no final assessment has been ordered till the date. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 144C(2) is the filing of the objections by the assessee with the Dispute Resolution Panel, if he is not accepting the draft assessment order. The said provision also contemplates filing of such objection before the Assessing Officer as well. If such objection is filed in time, then the Dispute Resolution Panel alone shall proceed to decide the matter as provided under Section 144C(5) 6 of the said Act. Therefore, the Assessing Officer cannot proceed to pass the final order till the Dispute Resolution Panel passes an order as stated supra. Once the objection is filed within the period of limitation, consideration of the same is vested only with the Dispute Resolution Panel as provided under Section 144C(5), (6), (7) (8) of the said Act and as such the Assessing Officer cannot decide such objection. Therefore, filing of such objection before the Assessing Officer within time itself will not get over the period of limitation, if such filing before the Dispute Resolution Panel was after such period. At the same time, if objections are filed before the DRP, and AO is merely informed of filing of the objections before the DRP, and no objections as filed before DRP, are provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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