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2019 (6) TMI 1300 - HC - Income TaxPowers of the DRP u/s 144C(8) - authority either to direct the AO or TPO to make further enquiry and decide the matter - DRP has reduced the variation than what was granted to the assessee in the draft assessment order - Tribunal was right in not deciding the grounds raised by the Revenue in their grounds of appeal touching upon the merits of the assessment order? - HELD THAT:- The order dated 24.11.2015 passed by the DRP is an order reducing the variation proposed in the draft assessment order dated 25.02.2015. Thus, in our considered view, the Tribunal was not right in holding that the DRP exceeded its jurisdiction in passing the order. In any event, the order passed by the DRP was not impugned before the Tribunal rather what was impugned was the assessment order dated 28.12.2015 passed under Section 144C(13) r/w Section 143(3) of the Act. Therefore, the Tribunal was required to consider on merits whether the said assessment order was justified or not. The Revenue was clear in their mind in the challenge before the Tribunal which was an final order of assessment passed under Section 144C(13) and therefore, on facts we found that the DRP has granted relief to the assessee and the correctness of relief granted to the assessee which has translated into a final assessment order which was questioned by the Revenue before the Tribunal on merits. Therefore, on facts we have held as above. We hold that the Tribunal should decide the matter rather than allowing the appeal filed by the Revenue in its entirety. Appeal is allowed and the substantial questions of law are answered in favour of the assessee, consequently, the order passed by the Tribunal is set aside and the matter is remanded back to the Tribunal to decide the appeal filed by the Revenue on merits, on the grounds raised by it in the appeal memorandum as referred above and such other grounds that may be adduced at the time of hearing.
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