TMI Blog2023 (8) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. After the DRP exercises power vested u/s 144C as noticed above and directions are issued, the assessing officer has no discretion except to act in conformity with the directions. It is not in dispute that if no directions are issued, AO need not wait u/s 144C (13). However, the fact remains that once objections are filed before the DRP and till directions are issued, the assessing officer cannot proceed further. This is in light of mandate u/s 144C (13). Accordingly, non intimation to the assessing officer u/s 144C (2)(b)(ii) though is a lapse on the part of the petitioner, the only way of meaningfully and harmoniously interpreting the obligation of filing objections u/s 144C (2)(b)(ii) is to construe the procedure that once s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dure under Section 144C(13) and the time contemplated under Section 144C(13) is deemed to commence from the date of receipt of certified copy of this order by the assessing officer.The assessing officer is to follow the directions issued by the DRP at Annexure-N. - HON'BLE MR JUSTICE S SUNIL DUTT YADAV For The Petitioner (By Sri. Bharadwaj Sheshadri, Advocate A/W Sri Sandeep Huilgol., Advocate) For The Respondents (By Sri. M. Dilip., Advocate) ORDER Petitioner has sought for quashing of the assessment order dated 26.10.2022 at Annexure-A1; computation sheet at Annexure-A2; demand notice at Annexure-A3 and the correspondence dated 30.06.2023 issued by respondent No.3 at Annexure-A4. Petitioner has also sought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Annexure-A4, the DRP has declared that the directions made by it to the Assessing Officer have become infructuous and non-est is required to be set aside. The observations at paragraph No.3.0 at Annexure- A4 is extracted as follows: In view of the above, the Panel opines that the DRP, according to Section 144C, has jurisdiction only over the Draft Assessment Orders and not over Final Assessment Orders. In the present case as the Final Assessment order predates the DRP directions, the said DRP directions become infructuous and non-est. 4. It is submitted that the assessment order will have to be set aside in light of the directions issued by the DRP at Annexure-N and the matter will have to be proceeded afresh in terms of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , question as to whether non-filing of objections before the assessing officer will have the effect of assessing officer being empowered to go ahead and conclude the proceedings when in fact the petitioner had filed objections before the DRP and had not intimated the same to the assessing officer, requires consideration. 9. The scheme at Section 144C is clear and would envisage the procedure as follows: (a) On receipt of the draft order, the assessee within thirty days may file his acceptance of the variations to the Assessing Officer; or (b) In the event he disagrees with such variations, he has to file his objections to such variations with the Dispute Resolution Panel and the Assessing Officer. 10. Once such objections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to have waited till directions were passed by the DRP, as the directions have though been subsequently passed on 15.05.2023. Accordingly, the assessment order is required to be set aside. In light of the above, the assessment order at Annexure-A1 is set aside. Consequently, the computation sheet at Annexure-A2 and the demand notice at Annexure-A3 are set aside. 12. Insofar as the communication at Annexure-A4 is concerned, once the DRP issues directions, it is not concerned with the action of the Assessing Officer. The passing of directions by the DRP confirms right on the petitioner to have such directions adhered to and even otherwise, in terms of Section 144C(13), the assessing officer has no discretion. If that were to be so, the q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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