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TMI Blog2022 (2) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... y the 1st respondent under Section 143(3) of the Income Tax Act, 1961 (the 'Act' for short) and Ext. P8 order passed by the Dispute Resolution Panel (DRP) under Section 144C (5) of the Act rejecting Ext. P4 objections to the Draft Assessment Order. 2. The 1st respondent issued Ext. P1 Draft Assessment Order (DAO) dated 16.04.2021 under Section 144C of the Act. As per the provisions of Section 144C (2), the assessee has to file objections, if any, to the variation proposed in the DAO before the DRP within 30 days of receipt of DAO. Thus, the petitioner had time till 16.05.2021 to file his objection to Ext. P1 DAO. 3. Taking note of the second wave of Covid-19 pandemic, the Central Board of Direct Taxes (CBDT) issued Ext. P2 circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. 5. Challenging Ext. P3, the petitioner approached this Court contending, inter alia, that Ext. P3 Assessment Order is passed in violation of the provisions of Section 144C and in disregard to the principles of natural justice. 6. At the time of admission of the writ petition, this Court passed interim dated 13.07.2021 staying the operation and implementation of Ext. P3 including recovery of amounts demanded thereunder and the initiation of penalty proceedings mentioned therein. The said order was extended from time to time and a Statement dated 31.01.2022 has been filed on behalf of the respondents. 7. During the pendency of the writ petition, the DRP considered Ext. P4 objection to Ext. P1 DAO and rejected the objections as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s before the DRP, the time for fling objections to the DRP under Section 144C of the Act was extended till 31.05.2021 by Ext. P2 Circular issued by CBDT. Ext. P2 Circular was issued by CBDT in view of severe Covid-19 pandemic providing certain relaxation in respect of income tax compliances by the tax-payers including extension of time limit to file objections before the DRP. Ext. P2 Circular is issued by CBDT in exercise of its powers under Section 119 of the Act, which provides for powers of the CBDT to issue Circulars and the Assessing Authority is bound to observe and follow such circulars and instructions. The Hon'ble Supreme Court, in Catholic Syrian Bank Ltd. v. Commissioner of Income Tax, Thrissur [2012 (3) SCC 784: 2012 KHC 412 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (2). 13. Section 144C of the Act thus mandates that an assessment order under Section 143(3) of the Act shall be passed only after the assessee is granted an opportunity to file objections to the Draft Assessment Order. The petitioner has filed its objections to Ext. P1 DAO, within the extended time as per Ext. P2 Circular, which is binding on the respondents. However, the 1st respondent without considering the same, has passed Ext. P3 final assessment order. I find that Ext. P3 is issued in violation of the principles of natural justice and against the provisions of Section 144C and Ext. P2 Circular issued by CBDT. Accordingly, Ext. P3 Final Assessment Order is set aside. 14. During the pendency of this writ petition, the DRP, by Ext. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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