HC quashed assessment order passed in violation of Section 144C scheme

Hactom Agro Pvt Ltd. Vs National E Assessment Centre & ors (Bombay High Court)

Hon’ble Bombay High Court quashed and set aside the assessment order passed in violation of the scheme under Section 144C of the Income Tax Act, 1961. The High Court observed that assessing officer exceeded the jurisdiction in passing the assessment order when objections filed with DRP were pending and intimated to the assessing officer.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. Petitioner is impugning an assessment order dated 4^th May 2021 passed under Section 143(3) of the Income Tax Act 1961 (the Act). Mr. Chatterjee states that this order has been passed notwithstanding being informed that there is a refere

nce pending before the Dispute Resolution Panel (DRP). Mr. Chatterjee states that the draft assessment order was received on 31^st March 2021, reference to DRP was lodged on 28^th April 2021, i.e, within the thirty day period, and by a communication dated 29^th April 2021 respondent was informed about the reference to DRP. Mr. Chatterjee states that respondents received the communication on 3^rd May 2021 but still went ahead and passed the impugned order dated 4^th May 2021.

Mr. Chatterjee states that petitioner did not approach this court immediately but waited and has lodged this petition only on or about 29^th January 2022 after the DRP passed the order dated 29^th December 2021.

2 In our view, since the order dated 4^th May 2021 has been passed notwithstanding petitioner’s reference to DRP, that order is required to be quashed and set aside and is hereby quashed and set aside. Respondents to pass fresh assessment order considering the observations of the DRP in its order dated 29^th December 2021.

3 Petition disposed.

4 In view of the disposal of the petition, interim application does not survive and accordingly stands disposed.