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2020 (12) TMI 820 - AT - Income TaxReference to dispute resolution panel u/s 144C - time period prescribed within which only the AO can frame the final order u/s. 144C(3) - final assessment order u/s 144C(3) only within the time period as prescribed in section 144C(4) - jurisdiction of AO to frame the final assessment order u/s. 144(3) - HELD THAT:- In this case the draft assessment order as per section 144C (1) of the Act was passed on 28.12.2019 and the assessee had time of 30 days from the date of receipt of draft order to file objection before the DRP as per sub-section (2)(b) of the Act or acceptance of the draft assessment order as per sub-section (2)(a) - In any case, this period of time i.e. 30 days gets over on 27.01.2020. We note that the assessee had preferred an objection before the DRP (Delhi) within 30 days of receipt as per sub-section (2)(b) of section 144C on 24.01.2020 which fact was intimated to the AO by physically filing the letter dated 27.01.2020 at the office of AO (On query the Ld. AR explained that the reference/objection had to be filed before DRP (Delhi) on 24.01.2020 which was Friday and 25th January & 26th January being Saturday and Sunday, the assessee physically filed the acknowledgment of filing objection at DRP before AO on 27.01.2020). AO ought to have awaited the decision of the DRP as envisaged under sub-section (5) of section 144C of the Act and which direction of DRP was binding on the AO as per sub-section (13) of section 144 and it is to be noted that after the direction of DRP, the AO could have framed the assessment without providing any opportunity to the assessee as envisaged in sub-section (13) of section 144C. In this case, the AO failed to await for the direction of the DRP and has arbitrarily framed the final assessment order which vitiates the final assessment order passed by him. AO had no jurisdiction to frame the final assessment order on 27.01.2020 u/s. 144(3) of the Act, since he was divested of jurisdiction to pass final order between 27.01.2020 to 31.01.2020. Even the AO could not have framed the final order u/s. 144C(3) on 27.01.2020 because the assessee had filed its objection before the DRP on 24.01.2020, the DRP is in seisn of the case of assessee and between 24.01.2020 and till the DRP gives direction as per section 144C(5) AO does not enjoy jurisdiction over the assessee’s case for AY 2016-17. Therefore, the assessee succeeds in its challenge which it has raised against the jurisdiction of AO to frame the final assessment order u/s. 144(3) dated 27.01.2020 along with demand notice u/s. 156 of the Act is therefore, null in the eyes of law and is quashed. - Decided in favour of assessee.
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