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2016 (5) TMI 323 - AT - Income TaxValidity of final order passed by the Assessing Officer - Reference to Dispute Resolution Panel - Held that:- There is no doubt as to the fact that the Transfer Pricing Officer has proposed adjustment to be made on account of difference in the arm's length price in his order passed under section 92CA of the Act. Further, under section 144C(2) of the Act, such eligible assessee has the option either to accept the said addition or to file objection before the Dispute Resolution Panel and such option has to be exercised within 30 days of receipt of such draft assessment order. The procedure is if the assessee chooses to raise its objection before the Dispute Resolution Panel, it has to be done within 30 days and if it does not do so, the Assessing Officer has power to pass the final assessment order and then the straight route of the filing appeal before the Commissioner of Income-tax (Appeals) is open to the assessee. Nowhere in any of the provisions the Assessing Officer has been given any option to pass or not to pass the draft assessment order. Further, on a perusal of Circular No. 5 of 2010, dated June 3, 2010 issued by the Central Board of Direct Taxes being explanatory notes to the provision of the Finance (No. 2) Act, 2009, it has been very clearly stated that the provisions are applicable with effect from October 1, 2009. It is also an undisputed fact that the order of the Assessing Officer in the present case is dated December 26, 2011, the order of the Transfer Pricing Officer is dated October 21, 2011. In view of the above, the order passed by the Assessing Officer is without jurisdiction. Reliance placed by the learned counsel of the assessee on the judgment of High Court of Madras in the case of Vijay Television P. Ltd. v. DRP [2014 (6) TMI 540 - MADRAS HIGH COURT ] is not out of place wherein held that the final order passed by the Assessing Officer without passing a draft assessment order is bad in law. - Decided in favour of assessee.
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