TMI Blog2023 (6) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... out jurisdiction. Once, DRP has held that after passing of the assessment order u/s 143(3) the same cannot be annulled, modified, amended at a subsequent date, the only course left open to the AO was to implement the directions of DRP in letter and spirit and drop the assessment proceedings and nothing else. As per the scheme of the Act, once an assessment order has been passed under Section 143(3) of the Act in respect of any assessment year, the Assessing Officer cannot tinker with that assessment. The statue does not confer any powers on the AO to either withdraw or modify or substitute the assessment order passed u/s 143(3) of the Act with another assessment order. Thus the impugned assessment order passed, being wholly without jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act,1961, assessee appeared before the Assessing Officer from time to time and ultimately the Assessing Officer completed the assessment under Section 143(3) of the Act vide order dated 15.09.2021 determining the total income at Rs.6,31,98,895. Immediately thereafter, on 30.09.2021, the Assessing Officer passed a draft assessment order purportedly under Section 144C(1) of the Act determining the total income at the very same figure of Rs.6,31,98,875. Against the draft assessment order, the assessee raised objections before learned Dispute Resolution Panel (DRP), inter alia, challenging the validity of the draft assessment order. 5. After considering the submissions of the assessee in the context of facts and material on record, learned D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions in the light of decisions relied upon and perused the material available on record. 11. Before we proceed to decide the issue, it is necessary to bear in mind the following dates and events: 15.09.2021 Assessment order passed under Section 143(3) of the Act determining the total income at Rs.6,31,98,895. 30.09.2021 Draft assessment order passed under Section 144C of the Act determining the total income at Rs.6,31,98,895 17.05.2022 Directions issued by the learned DRP; 27.06.2022 Final assessment order passed under Section 143(3) read with section 144C(13) of the Act determining income at Rs.6,31,98,895. 12. From the aforesaid dates and events, it is very much clear that the Assessing Officer, in exercise of jurisdiction under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing the order u/s. 143(3) of the Act dated 15.09.2021 for the year under reference where it has been stated as follows in para 1:- Order u/s. 143(3) of the IT Act was passed in this case on 15.09.2021 inadvertently. The order may be read as Draft order u/s. 144C of the IT Act. 3.4 Under sub-section (1) of section 144C of the Act, the Assessing Officer is required, in the first instance, to forward a draft of the proposed order of assessment ( draft assessment order ) to the eligible assessee, if he proposes to make any variation which is prejudicial to the interest of such assessee. Sub-section (2) thereof, inter alia, allows the eligible assessee to file objections to such variation before the DRP and the Assessing Officer. In a case whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. As could be seen from the observations of learned DRP in paragraph 3.5 and 3.6, it is not uncertain direction, learned DRP has held that once the final assessment order has been passed on 15.09.2021 under Section 143(3) of the Act, the same cannot be annulled, modified, amended at a subsequent date on the ground that the same was passed inadvertently. Further, learned DRP has upheld the objection raised by the assessee in ground no. 4(ii). For this reason, learned DRP, thought it prudent not to adjudicate rest of the grounds. Thus, the direction of learned DRP is clear and categorical enough to indicate that the draft assessment order passed under Section 144C(1) of the Act is without jurisdiction, hence, invalid. 15. Surprisingly, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
