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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Fiberhome India Pvt. Ltd. – Appellant
Versus
National E-Assessment Centre, Addi. - Joint - Deputy - Assistant Commissioner of Incom – Respondent
| Table of Content |
|---|
| 1. challenge to final assessment order (Para 1 , 2) |
| 2. contentions regarding jurisdiction and objections (Para 3 , 4) |
| 3. court's decision on the jurisdiction issue (Para 5 , 6 , 7) |
| 4. disposal of writ petition (Para 8) |
JUDGMENT
Navin Chawla, J. (Oral)--This petition has been filed by the petitioner challenging the Final Assessment Order dated 30.06.2021 passed by the respondent under Section 143(3) read with Section(s) 144C(3) and 144B of the Income Tax Act, 1961 (hereinafter referred to as the `Act') for the Assessment Year 2017-18.
2. The learned counsel for the petitioner submits that the petitioner had filed its return of income for the concerned Assessment Year on 29.11.2017. The case of the petitioner was selected for scrutiny (Computer Aided Scrutiny Selection) and accordingly, notice under Section 143(2) of the Act was issued to the petitioner on 27.08.2018. Subsequently, the case of the petitioner was referred to the Transfer Pricing Officer under Section 92CA(3) of the Act for determination of the `arm's length price' for the `international transaction'. The Transfer Pricing Officer, New Delhi, vide order dated 22.01.2021, made an adjustment of Rs.20,22,92,9
The court established that a final assessment order cannot be issued without awaiting directions from the Dispute Resolution Panel when objections have been timely filed.
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.
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 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.
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 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 directions from the Dispute Resolution Panel before finalizing assessments after taxpayer objections, as mandated by the Income Tax Act, ensuring compliance with stat....
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 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....
An assessment order passed without compliance with procedural requirements of the Income Tax Act is invalid and must be set aside.
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