9911796707
TMI Blog2024 (11) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... mind of the petitioner that the impugned order was passed u/s 143 (3) of the Act. Petitioner also submits that the portal also reflects that an order was issued u/s 144C of the Act and not u/s 143 (3) of the Act. In view of the communication dated 13.01.2020, the petitioner could not harbour any confusion in this regard as well, as the AO had clearly pointed out that there was some systemic error in reflecting the impugned order as an order u/s 144C of the Act. The petitioner s claim that the impugned order is passed under Section 144C of the Act is clearly erroneous. The petitioner s challenge to the impugned order is on the ground that it is an order under Section 144C of the Act, which as noted above, is incorrect. The challenge to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the impugned order is a draft assessment order under Section 144C of the Act. The Revenue calls into question the said assumption. According to the Revenue, the impugned order is not an order passed under Section 144C of the Act, but an order passed under Section 143 (3) of the Act, and therefore, the present petition is ill-founded. 4. It is a common ground that the AO was required to pass an assessment order under Section 143 (3) of the Act on culmination of the scrutiny proceedings and no order under Section 144C of the Act could be passed. 5. In view of the above, the short question that falls for consideration is whether the impugned order was passed under Section 143 (3) of the Act or is required to be construed as an order under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditions. Accordingly, the AO had proceeded to make certain additions to the income as returned by the assessee. 8. It is be relevant to refer to some of the additions made by the AO in the impugned order, not for the purposes of examining the merits of the said additions but to ascertain whether the impugned order could be construed as a draft assessment order under Section 144C of the Act. The AO had disallowed the license fee of Rs. 57,32,41,853/-. Paragraph 4.2 of the impugned order, setting out the AO s conclusion in this regard, is reproduced below: 4.2 The reply of the assessee has been considered. It is the stand of the Department that variable license fee paid by the assessee under the New Telecom policy is capital in nature as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the assessee is computed as under: Total income as declared in the return of income Rs. 85,79,06,150 Add Non deduction of TDS Rs. 3,81,48,59,642 Add Disallowance of Annual License Fee Rs. 57,32,41,853 Add Deduction u/s 80IA Rs. 23,32,19,868 Total Income Rs. 5,47,92,27,513 Rounded off to Rs. 5,47,92,27,510 12. It is apparent from the above that the contents of the impugned order reflect in unambiguous terms, that it is an assessment order made under Section 143 (3) of the Act. As noted at the outset, the opening sheet of the impugned order clearly states that it is an order made under Section 143 (3) of the Act. 13. The petitioner s contention that the aforesaid order was passed under Section 144C of the Act stems from the heading of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not an assessment order, is insubstantial. 17. After the receipt of the impugned order, the petitioner sent a letter dated 13.01.2020, inter alia, stating that the petitioner had received the draft of the assessment order passed under Section 144C of the Act. The petitioner also submitted that in terms of Section 144C of the Act, the AO is required to pass a draft assessment order, only in cases where the assessee is a foreign company, or in cases where any variation of income proposed as a consequence of an order passed by the Transfer Pricing Officer (TPO). The petitioner stated that since it is an Indian company and the issue of transfer pricing adjustment does not arise, a draft assessment order could not be passed. 18. The AO respon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
