American megatrends International India Private Limited Vs Assessment Unit (Madras High Court)
In this Writ Petition, the petitioner challenged the Impugned Assessment Order dated 27.05.2025 issued under Sections 143(3), 144B, and 144C(3) of the Income Tax Act, 1961 for the assessment year 2022-2023. The dispute arose following a Transfer Pricing Officer order under Section 92CA(3) on 17.01.2025 and a subsequent Draft Assessment Order dated 19.03.2025 under the faceless assessment scheme. The petitioner filed an application before the Dispute Resolution Panel (DRP) under Section 144C(2)(b) but failed to inform the Assessing Officer. Consequently, the Assessment Unit passed the Impugned Assessment Order on 27.05.2025.
The petitioner contended this omission was a curable procedural defect. The respondent argued that since the application was not furnished to the Assessing Officer within the statutory period, the Impugned Order was valid. Considering the relevant provisions and precedents from Madras, Karnataka, and Delhi High Courts, the Madras High Court held that the failure to intimate the DRP filing was a curable defect. The Court set aside the Impugned Assessment Order and remitted the matter to the respondent to pass a fresh order after the DRP disposes of the petitioner’s application. The Writ Petition was allowed, and connected miscellaneous petitions were closed with no costs.
