BT Global Communications India Pvt. Ltd. Vs DCIT (Delhi High Court)
Delhi High Court held that order issued u/s. 143(3) of the Income Tax Act wrongly challenged on the assumption that it is draft assessment order u/s. 144C is untenable in law. Accordingly, cost of ₹1,00,000/- imposed on petitioner.
Facts- The petitioner has filed the present petition impugning an order dated 06.12.2019, passed by the Assessing Officer assessing the petitioner’s total income at ₹5,47,92,27,510/-. According to the petitioner, the impugned order is a draft assessment order issued under Section 144C of the Income Tax Act, 1961. The petitioner claims that the AO has erred in passing the impugned order as the petitioner is not an ‘eligible assessee’; therefore, no such draft assessment order under Section 144C of the Act could be passed in its case.
Conclusion- Held that the challenge to the impugned order on the assumption that it is a draft assessment order under Section 144C of the Act after notwithstanding the clear language of the contents of the impugned order, is unsustainable. There was no scope of raising such a challenge after the AO had amply clarified that the impugned order was issued under Section 143(3) of the Act and the assessee’s contentions to the contrary are insubstantial. In view of the above, the present petition is dismissed with costs, quantified at ₹1,00,000/-. The costs shall be deposited with the Delhi High Court Legal Services Committee within a period of four weeks from date.
