Jackson Square Aviation Ireland Limited Vs ACIT Circle INT Tax 2(1)(2) & Anr (Delhi High Court)
In a recent ruling Hon’ble Delhi HC set-aside the assessment order which was passed when objection before DRP were pending.
Assessment Order was passed u/s 143(3) read with 144C(3) without waiting for the decision of Dispute Resolution Panel (DRP) which was under challenge on the ground that it was passed without jurisdiction.
Show cause notice u/s 148A(b) was issued for AY 2022-23 calling upon the assessee to show cause as to why the receipts should not be taxed as interest income during the year under consideration. Response was submitted by the assessee. AO subsequently passed the Draft Assessment Order proposing an addition of Rs.499,99,19,251/- on account of treating lease rentals received by the Assessee from leasing of aircraft as interest income and proposed penalty as well.
Aggrieved by the Draft Assessment Order passed under Section 144C(1), assessee filed its objections in Form No.35A with the DRP. It was submitted on behalf of assessee that it is an eligible assessee in terms of Section 144C(15)(b)(i) and that the objections were duly filed within time in terms of Section 144C(2)(b) before the DRP. Assessment order was passed during the pendency of objections before DRP.
