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MANMOHAN, NAVIN CHAWLA
Anand Nvh Products Private Limited – Appellant
Versus
National E Assessment Centre Delhi – Respondent
JUDGMENT
Manmohan, J. - The petition has been heard by way of video conferencing.
CM Appl. 24646/2021 (for exemption)
Allowed, subject to just exceptions.
Accordingly, present application stands disposed of.
W.P.(C) 7936/2021 & CM APPLs. 24645-646/2021
1. Present writ petition has been filed challenging the Assessment Order dated 15 thMay, 2021, notice of demand issued under Section 156 and notice for initiating penalty proceeding under section 271AAC(l) of the Income Tax Act, 1961 [ the Act ] passed by Respondent No. 1 under Section 143(3) read with Section 144C for the assessment year 2017-18 and restoring the proceedings at the level of Dispute Resolution Panel ( DRP ).
2. Learned counsel for the Petitioner states that Respondent No.1 erred in passing the impugned Final Assessment Order on 15 th May 2021, without waiting for the decision of the DRP. He states that the petitioner had filed objections before the DRP on 5th May, 2021 against the Draft Assessment Order dated 6th April 2021 i.e., within the prescribed thirty-day time period from the date of the Draft Assessment Order as per Section 144C(2) of the Act. He states that the impugned Assessment Order is in blatant violation of
Violation of mandatory procedure under Section 144C of the Income Tax Act and a circular issued by the Central Board of Direct Taxes led to the setting aside of the Assessment Order and restoration o....
The court emphasized the importance of complying with time limits and the jurisdiction of the Assessing Officer to pass assessments in conformity with the directions of the Dispute Resolution Panel.
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
Jurisdiction to issue assessment orders is invalid if objections are pending with the Dispute Resolution Panel; proper compliance with procedures outlined in tax legislation is essential for lawful a....
The court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
The central legal point established in the judgment is the importance of adhering to statutory procedures and timelines in the assessment process under the Income Tax Act.
An assessment order finalized without allowing objections to a draft constitutes a jurisdictional defect, rendering the order invalid.
A taxpayer must file objections to proposed tax assessments with both the Dispute Resolution Panel and Assessing Officer for effective challenge under the Income Tax Act.
The court ruled that an Assessing Officer must wait for the Dispute Resolution Panel's directions before passing a final assessment order, even if objections are not communicated timely, emphasizing ....
The assessing officer must await the Dispute Resolution Panel's decision before proceeding with the final assessment, as outlined in Section 144C of the Income Tax Act, ensuring adherence to procedur....
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