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2015 (10) TMI 390 - AT - Income TaxValidity of assessment order passed u/s 144C(2) - whether barred by limitation - determination of the Arms’ Length Price of the international transaction - Held that:- Section 144C of the I.T. Act deals with the circumstances under which the AO can make a reference to the DRP and the procedure to be followed by the AO in making a reference to the Dispute Resolution Panel and also the procedure to be followed by the DRP while dealing with the objections raised before it by the assessee and the passing of the final assessment order by the AO. In the case before us, the assessee did not file the objections before the DRP within the prescribed time and therefore, the objections are not maintainable until the delay is condoned by the DRP. We find that the DRP has refused to condone the delay in raising of the objections before it by the assessee and therefore it amounts to non admission of the grounds and adjudication by the DRP. Therefore, there are also no directions issued by the DRP for the guidance of the AO to enable him to complete the assessment. Therefore, the final assessment order passed by the AO after rejection of the assessee’s objections by the DRP ‘in limini’ is thus not sustainable. The final assessment order passed by the AO dated 7.1.2015 allegedly u/s 143(3) r.w.s. 92CA(3) r.w.s. 144C(5) is therefore to be quashed. See Bank of America NA Versus Assistant Director of Income-tax (IT) Cir. 3(2), Mumbai [2012 (12) TMI 375 - ITAT MUMBAI ] - Decided in favour of assessee.
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