9911796707
TMI Blog2024 (2) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... /Draft Assessment Order passed by the Assessing Officer ["the AO"] u/s 144C dated 25/11/2019, the order passed by the Dispute Resolution Panel, New Delhi-1 ["DRP-1"] dated 27/02/2020 and the order passed by the National e-Assessment Center [NeAC] dated 30/03/2021, to the extent prejudicial to the interest of the appellant, are bad in law and deserve to be quashed to that extent. 2. That the grounds of appeal hereto are without prejudice to each other. 3. That on the facts and in the circumstances of the case and in law, the Assessing Officer/ NeAC vide his order dated 30/03/2021 has assessed the income of the appellant at a loss of Rs 4,91,40,907/- against the returned loss of Rs 5,23,09,629/- in most arbitrary, palpably erroneous and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961, without considering that the provisions of section 43B are applicable to such payment as the payment has been deposited before filing of Income Tax Return as per section 139(1) of the Act. 5.2 The Assessing Officer erred in disallowing the payment of Provident Fund and ESI without considering that out of the total amount of Rs 19.93,460/- A sum of Rs 11,22,959 was employer's contribution and Rs 8,70,501 was received from the employee's for their share of contribution. 6. The Assessing Officer erred in disallowing the expenditure incurred by the assessee amounting to Rs 4,08,267/- towards increase in capital. 7. The Assessing Officer erred in treating Rs 7,66,993 being the profit on sale of fixed assets a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 27/02/2020 providing the complete relief to the assessee on the proposed addition made by the AO in Draft Assessment Order u/s 144C(5) of the Act. 5. The AO/ National e-Assessment Centre after the DRP's Order passed an order u/s 143(3) r.w.s 144C (5) and 144C (13) r.w.s. 143(3) (A) and 143(3) (B) of the Act on 30/03/2021. In this order, the AO/[NeAC] made following disallowances to the returned loss of the assessee and reduced the returned loss to Rs. 4,91,40,907 against the returned loss of Rs. 5,23,09,629. 6. The above timelines are summarized below: Sr.No. Description Date of Order Remarks 1. Draft Assessment Order u/s. 144C 25/11/2019 Proposed adjustment of Rs. 2,16,12,356. 2. The AO/[NeAC] after the DRP's Order 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent (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 which is prejudicial to the interest of such assessee. (2) On receipt of the draft order, the eligible assessee shall, within thirty days of the receipt by him of the draft order,- (a) File his acceptance of the variations to the Assessing Officer; or (b) File his objections, if any, to such variation with, - (i) The Dispute Resolution Panel; and (ii) The Assessing Officer". 9. Further, section 144C(5) provide that in cases where the assessee has opted for filing an objection with the DRP, the DRP shall issue such directions for the guidance of the AO/NeAC to compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made by any income-tax authority and report the result of the same to it. (8) The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order." 10. Further, a careful examination of the above scheme of reference to the Dispute Resolution Panel clearly demonstrates that the AO/NeAC while passing his Draft Assessment Order has to propose all the variations to the income of the assessee, be it arising out of Transfer Pricing matters or regular Corporate Taxation matters. Section 144C(1) states that the Assessing Officer has to forward a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of acceptance received from eligible assessee or no objection received within 30 days. d. The Dispute Resolution Panel, on receipt of objection, shall issue direction to the AO for completion of assessment. e. The DRP shall issue directions after considering the Draft Assessment Order and other relevant evidences, reports and objections filed by the assessee. f. The DRP, before issuing directions, may make further enquiries before issuing directions. g. Every direction issued by DRP shall be binding on the AO/NeAC. h. No direction shall be issued without granting an opportunity of being heard to the assessee or AO/NeAC. i. No direction shall be issued after 9 months in which Draft Assessment Order is forwarded to eligible as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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