Ares Diversified Vs ACIT (ITAT Delhi)
In a landmark decision, the Delhi Income Tax Appellate Tribunal (ITAT) in the case of Ares Diversified Vs Assistant Commissioner of Income Tax (ACIT) addressed the implications of the Dispute Resolution Panel’s (DRP) rejection of belated objections on the limitation period for passing the final assessment order under Section 144C(4) of the Income Tax Act, 1961. The ruling clarifies the boundaries of procedural compliance and emphasizes the importance of adhering to statutory timelines.
The assessee, Ares Diversified, filed appeals against the assessment orders dated June 29, 2023, issued under Section 147 read with Section 144C(13) of the Income Tax Act, 1961. The primary contention was that the final assessment order was barred by limitation, as it was not passed within the mandated period.
Background of the Case
The assessee had not filed the return of income for the relevant assessment year, prompting the Assessing Officer (AO) to reopen the case under Section 148. After obtaining the necessary sanctions, the AO issued a notice which the assessee responded to, filing the return of income. The AO made additions on account of short-term capital gains, alleging treaty shopping and fiscal evasion.
DRP’s Examination and Rejection of Objections
