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TMI Blog2025 (1) TMI 1478X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Order dated 12.12.2019 for AY 2016-17, as well as Assessment Order dated 29.09.2021. 3. Shri Nageswar Rao, appearing on behalf of the assessee submits that the Assessing Officer (AO) has passed final assessment order dated 12.12.2019 without passing draft assessment order as mandated u/s. 144C(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The Assessing Officer along with assessment order dated 12.12.2019 has issued demand notice and penalty notice of even date. Passing of final assessment order without passing draft assessment order is invalid and nonest. In support of his submissions he placed reliance on the decision in the case of ACIT vs. Vijay Televisions (P) Ltd. (22018) 407 ITR 642 (Madras). 3.1. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e color of Final Assessment Order to the order dated 12.12.2019. The Assessing Officer has tried to rectify mistake by way of rectification order dated 27.09.2021, wherein, he has held as under:- "It is hereby clarified that the earlier order dated 12.12.2019 should be read as draft assessment order u/s. 144C r.w.s. 143(3) of the Act." 7. The Hon'ble Madras High Court in the case of ACIT vs. Vijay Televisions (P) Ltd. (supra) in a similar case, wherein, the Assessing Officer passed assessment order u/s. 143(3) of the Act and had also issued demand notice u/s. 156 of the Act and penalty notice. On realizing mistake that final assessment order has been passed without complying with provisions of sections 144C(1) of the Act, the AO suo moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory look of the timelines in passing the assessment order dated 29.09.2021, we find the said order is time barred. The DRP has issued directions u/s. 144C(5) of the Act on 30.09.2020. The Assessing Officer was required to pass final assessment order in conformity with directions of the DRP within one month from end of the month in which such directions were received. Whereas, in the instant case the assessment order was passed by the AO on 29.09.2021 i.e. almost after 12 months from the end of month in which the DRP directions were passed. Even if, benefit of TOLA is allowed to the Assessing Officer, the notification issued on 27.04.2021 under TOLA, extended time for passing order u/s. 144C(13) of the Act up to 30.06.2021, hence, final asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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