OmniActive Health Technologies Limited Vs Assessment Unit (Bombay High Court)
The Bombay High Court has nullified an assessment order issued to OmniActive Health Technologies Limited for the Assessment Year 2020-21. The company contested the order, arguing that the Assessing Officer (AO) prematurely finalized the assessment despite the company having filed objections with the Dispute Resolution Panel (DRP).
OmniActive stated that Section 144C(2) of the Income Tax Act, 1961, allows assessees 30 days to file objections with the DRP and simultaneously inform the AO. Due to an oversight, OmniActive did not directly inform the AO about the DRP reference within the stipulated 30-day period. Unaware of the pending objections, the AO proceeded to pass the assessment order on November 21, 2023, after the 30-day window. The company informed the AO of the DRP filing only on November 28, 2023.
The High Court acknowledged the company’s oversight but emphasized that the DRP reference was filed within the statutory period. Citing Section 144C(4), which mandates the AO to consider the DRP’s views before passing a final order, the court deemed the assessment order premature. The court found support for its decision in the precedent of Sulzer Pumps India Pvt. Ltd. v. Deputy Commissioner of Income Tax, Circle 15(3)(2) & Ors.
