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TMI Blog2017 (8) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) of the Act without complying the requirement of Section 144C(1)? (B) Whether on the facts and circumstances of the case and in law, the ITAT was justified in upholding the order of CIT(A) without appreciating that the interest of natural justice would have been better served if the ITAT had set aside the assessment order u/s. 143(3) of the Act to the file of the Assessing Officer with a direction to make fresh assessment after following the procedure laid down in Section 144C of the Act, since the Assessing Officer had merely followed Board's Circular No. 05 of 2010 dated 03.06.2010 which was binding on him and Board's Circular No. 09 of 2013 dated 19.11.2013 was not in existence on the date of passing order u/s. 143(3) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer had no powers to suo motu withdraw the assessment order after following the procedure laid down in Section 144C of the Act was not before the consideration of Madras High Court in the case of Vijay Television (supra) and Andhra Pradesh High Court in the case of Zuari Cement Ltd vs. ACIT respectively?" 2. The facts are not in dispute and can be summarized as under: 2.1 For the assessment year 2009-10, the return of the assessee was taken in scrutiny by the Assessing Officer. The assessee was subjected to transfer pricing regime on account of its international transactions with associated persons. Against the returned income of Nil, the Assessing Officer in the order of assessment dated 22.02.2013 computed the assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court in case of Zuari Cements Ltd. (supra) against which we are informed that SLP has been dismissed. We notice that the Delhi High Court in case of ESPN Star Sports Mauritius S.N.C. Et Compagnie and ESS Distribution (Mauritius) S.N.C. Et Compagnie vs. Union of India and Another reported in [2016] 388 ITR 383 (Delhi) though was not strictly concerned with the issue at hand, however, held and observed that the Assessing Officer is bound by the orders passed by the Dispute Resolution Panel and the order passed by the Assessing Officer disregarding such order is ab-initio void. 5. Section 144C of the Act refers to the Dispute Resolution Panel. Sub-section (1) of Section 144C provides that in case of an eligible assessee, the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 144C, every direction issued by the DRP would be binding on the Assessing Officer. Sub-section (13) of Section 144C further provides that upon receipt of the directions issued by the DRP under sub-section (5), the Assessing Officer shall in conformity with the directions complete the assessment without providing any further opportunity of being heard to the assessee. 6. These statutory provisions make it abundantly clear that the procedure laid down under Section 144C of the Act is of great importance and is mandatory. Before the Assessing Officer can make variations in the returned income of an eligible assessee, as noted, sub-section (1) of Section 144C lays down the procedure to be followed notwithstanding anything to the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 144C, the Assessing Officer is expected to pass the order of assessment in terms of such directions without giving any further hearing to the assessee. Thus, at the level of the Assessing Officer, the directions of the DRP under sub-section (5) of Section 144C would bind even the assessee. He may of course challenge the order of the Assessing Officer before the Tribunal and take up all contentions. Nevertheless at the stage of assessment, he has no remedy against the directions issued by the DRP under sub-section (5). All these provisions amply demonstrate that the legislature desired to give an important opportunity to an assessee who is likely to be subjected to upward revision of income on the basis of transfer pricing mechanism. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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