TMI Blog2021 (11) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... NT MEMBER: The captioned appeals have been filed at the instance of the Assessee against the separate orders of the Dispute Resolution Panel-2, Mumbai (DRP in short) dated 29/09/2017, 29/11/2017 and 29/09/2017 relevant to Assessment Years (AYs) 2008-09, 2009-10 2010-11 respectively. 2. The assessee has raised as many as 34 common grounds of appeal(s). But the assessee has challenged the validity of assessment order framed under section 153A r.w.s. 143(3) 144C(13) of the Act in ground no. 1 being barred by time which is reproduced as under: 1. The assessment order passed by the learned Deputy Commissioner of Income Tax, Central Circle-2, Vadodara ( the Assessing Officer ) is invalid and void-ab-initio as it is barred by time. 2.1. The assessee in ground no. 1 has challenged the validity of assessment order framed under section 153A r.w.s. 143(3) 144C(13) of the Income Act, 1961 (hereinafter referred to as the Act ) being barred by time and thus the assessment order ought to be quashed. 3. The ld. ARs S/Shri Milin Mehta Bhavin Marfatia appearing on behalf of the assessee before us had challenged the validity of the assessment order framed under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and faster assessment process for a class of assessee s termed as 'eligible assessee'. The provisions of Section 144C of the Act mandates the Assessing Officer to forward the draft assessment order to the eligible assessee. The eligible assessee is a person in whose case variations arises as a consequence of an order of TPO passed under section 92CA(3) of the Act. If the assessee is aggrieved by the variation suggested by the TPO and incorporated by the AO in the draft assessment order, he may, being the eligible assessee, file his objection to the DRP only with respect to such variation. The introduction of section 144C of the Act was not merely procedural change but a substantive change providing an option to the assessee to take the advantage of fast track disposal of its grievance by approaching to the Dispute Resolution Panel (DRP). 5.1. The Hon'ble Madras High Court in the case of M/s. Vedanta Ltd.(supra) has held that the provisions of section 144C inserted by Finance (No.2) Act 2009 are applicable from assessment year 2011-12 onwards only and they would not apply to assessment year 2010-11 or to earlier assessment years. The relevant judgment is extracted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Any amendment in the Act which comes into force after the first day of April of a financial year would not apply to an assessment for that year, even if the assessment were to be finalized subsequent to the coming into force of the amendment. (see paragrah 6 of Karimtharuvi (supra)). 22. Section 144 C is extracted below to the extent to which it is relevant. Reference to dispute resolution panel. 144C (1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee.' 23. Sub-section (2) states that on receipt of the draft order, the assessee shall, within 30 days either file acceptance of the variations or objections to the same before DRP. Subsection (3) states that the Assessing Officer shall complete the assessment on the basis of the draft order, if the assessee intimates acceptance of the variations to him or if no objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, 1971. The contention was that penalty proceedings cannot continue before the Inspecting Assistant Commissioner because the essential requirement of amended Sub-section (2) was not satisfied. The Tribunal accepted the said plea and allowed the appeal. At the instance of the Revenue, the Tribunal stated the following question for the opinion of the Orissa High Court under Section 256(1) of the Act : Whether, on the facts and circumstances of the case and on a true interpretation of Section 274, as amended by the Taxation Laws (Amendment) Act, 1970 the Inspecting Assistant Commissioner to whom the case was referred prior to April 1, 1971, had jurisdiction to impose penalty. 6. The High Court answered the question in favour of the assessee whereupon the matter was brought to this Court. This Court at the outset stated the general principle applicable in this behalf in the following words: It may be stated at the outset the general principle is that a law which brings about a change in the forum does not affect pending actions unless an intention to the contrary is clearly shown. One of the modes by which such an intention is shown is by making a provision for change over of proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w: 6. The provisions of section 144C of the Act vide which the assessee was given an option to take the benefit of specialised Dispute Resolution Panel as an alternate mechanism for expeditious disposal of dispute was inserted by the Finance (No.2) Act, 2009 w.r.e.f. 01/4/2009. The Hon'ble Madras High Court in the case of M/s. Vedanta Ltd. vs. ACIT (supra) has considered the issue of applicability of newly inserted provisions of Section 144C and has held that the amendment being substantive in nature would apply prospectively from assessment year 2011-12 onwards. 5.3. In view of the above, the assessment for the year under consideration being AY 2008-09 cannot be subject to the provisions of section 144C of the Act. Accordingly, the time limit for passing the order as provided under section 153B of the Act shall be applied which reads as under: Time limit for completion of assessment under section 153A. 76 153B. (1) Notwithstanding anything contained in section 153, the Assessing Officer shall make an order of assessment or reassessment,- (a) in respect of each assessment year falling within six assessment years 76a [ and for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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