Case Law Details
Filing stay application before the lower authorities is directory and not mandatory for filing stay application before the ITAT
In brief :- In the case of DHL Express (India) P Ltd. v. ACIT [SA No. 119/Mum/2010], dated 19 November, 2010, the Mumbai Income Tax Appellate Tribunal (“Tribunal”) has held that stay application arising out of the assessment order passed by the Assessing Officer (“AO”) in pursuance to the direction of the Dispute Resolution Panel (“DRP”) under section 144C of the Income-tax Act, 1961 (“the Act”), is maintainable before the Tribunal. Filing of stay application before lower authorities is directory, and not mandatory, for filing stay application before the Tribunal.
Facts
• This is the first year wherein the assessee could have opted for DRP route instead of the conventional route (i.e., filing of an appeal before the Commissioner of Income tax (Appeals) against the assessment order passed by the AO.
• The assessee had adopted the DRP route. Accordingly, against the order of the AO, it had filed an appeal before the Tribunal.
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