9911796707
TMI Blog2024 (6) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the record. 2.1 The Ld. Counsel has argued on the additional ground which is raised as follows:- "That the Final Assessment Order dated 29.06.2023 passed by the Ld. AO is barred by limitation being in contravention of the provisions of Section 144C(4) of the Act to mandatorily pass the assessment order within one month from the end of the month in which the statutory period of filing the objections expired." 2.2 In this context it can be seen that case of assessee was flagged on Non-filers Management System of the Income Tax Department. The assessee had not filed the return of income for the relevant A.Y. Thus the AO formed reasons to believe that income had escaped assessment, and the case was reopened by issuing notice u/s 148 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, was enclosed. The assessee further intimated the AO on 01.11.2022 about filing of objections before the Panel by enclosing copies of Form 35A filed dated 28.10.2022 before the Panel. The assessee has filed copy of snapshot which shows that some correspondence was made some Dhvani Poladia to ZADN audit on 20.10.2022 in respect of AY 2013-14. The assessee has filed a copy of some postal dispatch to Aman Aggarwal-JC Bhalla & company, CA, Noida along with copy of consignment through Parcel Express. 4.2 The assessing officer vide his letter dated 21.04.2023 reported that no final assessment has been made by his office till the date. 4.3 The provisions of section 144C(2) of 1.T. Act are mentioned as under : (2) On receipt of the dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstance that arises as stated at sub-para (b) above. 4.5 The Panel further takes a note of provision of subsection 4 of section 144C as under: (4) The Assessing Officer shall, notwithstanding anything contained in section 153, pass the assessment order under sub-section (3) within one month from the end of the month in which, - (a) the acceptance is received; or (b) the period of filing of objections under sub-section (2) expires 4.5.1 The above two are the enabling provisions of Income Tax Act for AO as to how to handle the situation arises as stated at sub-para (b) above. Accordingly, the AO in case does not receive the intimation for filing of objections before the panel as per the Income Tax Act, he must pass the final asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting any guidance/ clarification in this regard. The copy of acknowledgment/intimation filed by the assessee, itself is a speaking document indicating the late filing of objections. This is a lapse part at end of the AO as per the IT provisions. 4.7 Under the facts and circumstances discussed above, the Panel is of the view that the objections filed by the assessee do not qualify to be the valid objections as per Income Tax Act as these do not pass the test parameters as prescribed in section 144C(2) of the Act. Accordingly, the Panel does not find it fit for issuing directions for the guidance of the assessing officer for enabling him to complete the assessment. The Revenue is advised to take further course of action as per the law and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall proceed to decide the matter as provided under Section 144C(5) & 6 of the said Act. Therefore, the Assessing Officer cannot proceed to pass the final order till the Dispute Resolution Panel passes an order as stated supra. Once the objection is filed within the period of limitation, consideration of the same is vested only with the Dispute Resolution Panel as provided under Section 144C(5), (6), (7) & (8) of the said Act and as such the Assessing Officer cannot decide such objection. Therefore, filing of such objection before the Assessing Officer within time itself will not get over the period of limitation, if such filing before the Dispute Resolution Panel was after such period. At the same time, if objections are filed before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DRP may confirm, reduce or enhance the variation proposed in the draft order. It is not in dispute that the DRP rejected the objection filed by the assessee on the ground that it is barred by limitation. Though, it is an order rejecting the objections but the Panel concluded that it "does not find it fit for issuing directions for the guidance of the assessing officer for enabling him to complete the assessment." Once, the DRP has chosen to reject the objections on the ground of delay, it goes without saying that resultant position of such rejection is nothing but confirming the merits of draft order passed by the AO but in no way extends the limitation of passing the order under sub-section (4) of Section 144 of the Act. The final order sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
