Skybridge Solutions Private Limited Vs DCIT (ITAT Hyderabad)
Final Assessment order Passed U/S 144C not appealable when the Assessee has not filed objection against the draft assessment order: ITAT Hyderabad ITA No.184/Hyd/2024
Case Summary:
Skybridge Solutions Private Limited (“Assessee) is a software development and services company. The Assessee filed the income tax return for the financial year 2020-21 declaring its total income of Rs. 1.06 Crore.
The return was processed U/S 143(1)(a) of the Income Tax Act (“Act”). Later on, the case was selected for scrutiny and a notice was served U/S 143(2) of the Act. Also, the reference was made by the Learned Assessing Officer (“Ld. AO”) to the Learned Transfer Pricing Officer (“Ld. TPO”) U/S 92CA(1) of the Act to determine the Arm’s Length Price (“ALP”) of the international transactions entered into by the Assessee.
Ld. TPO passed the transfer pricing order directing the Ld. AO an upward adjustment of Rs. 1.83 Crore. Ld. AO passed the draft assessment order (after giving ample opportunities to respond to the show cause notice issued in relation to adjustment proposed by the Ld. TPO and some other adjustments).
The Assessee was given 30 days to act in accordance with the provisions of section 144 i.e. either accept the proposed adjustments or file objection before the Dispute Resolution Panel. However, no action was taken by the Assessee during the aforesaid 30 days. Thereafter, the final assessment order was passed by the Ld. AO assuming that the proposed adjustment has been accepted by the Assessee.
