2021 (2) TMI 287 - DELHI HIGH COURT - Income Tax

Head Note / Extract:
Rectification of mistake - Validity of assessment order u/s 144C(2) - instead of being titled a ‘draft order’ is titled as ‘order’ or ‘final order’ - whether the same is an ‘irregularity’ or an ‘illegality'? - HELD THAT:- Though we have heard the counsels for some time but the counsel for the petitioner is unable to satisfy, under which provision the income tax return can be deemed to be accepted, for the reason of the mistake in non labelling the assessment order as a draft. Though it is contended that the Assessing Officer becomes functus officio but we would prefer to hear further. In the present case, the Assessing Officer, immediately after issuing the impugned order and within the time prescribed, issued a corrigendum to the effect that the same is not a final order but a draft order. In this case it was open to the assessee to, immediately on receipt of the corrigendum, prefer the objections to the Dispute Resolution Panel (DRP). The petitioner states that the order was also followed by the demand notice and the penalty notice.