Mohammed Abdul Aziz Khalid Vs Asst. Director of Income Tax (ITAT Hyderabad)
In this case, Assessee challenged before ITAT the directions issued by DRP dated 15.12.2022, wherein DRP dismissed the objections as not maintainable. Tribunal examined the sequence of events & noted that the Draft Assessment Order u/s 144C was issued on 23.03.2022, & Assessee acknowledged receipt by filing objections before AO on 09.04.2022, instead of filing objections before DRP within the permitted time (up to 22.04.2022).
Since Assessee did not file timely objections before DRP, AO proceeded to pass the Final Assessment Order on 06.05.2022, which Assessee separately challenged before CIT(A), & that appeal is still pending. DRP, after obtaining a remand report, concluded that it had no jurisdiction to adjudicate objections against a Final Assessment Order, & therefore dismissed the objections as non-maintainable.
Tribunal held that the facts recorded by DRP were undisputed, & since Assessee’s appeal before ITAT was essentially against DRP’s directions—not the Final Assessment Order—the appeal before ITAT was not maintainable. However, noting Assessee’s risk of coercive recovery pending CIT(A) appeal, ITAT directed CIT(A) to dispose of the pending appeal expeditiously, preferably within three months.
Tribunal also condoned the 202-day delay in filing ITAT appeal, as Assessee was bona fide pursuing DRP route. Ultimately, the appeal was dismissed, as ITAT found no merit in interfering with DRP’s refusal to entertain objections once the Final Order was already passed.
