Open Silicon Research Private Limited Vs Assessment Unit (Karnataka High Court)
Summary: The High Court of Karnataka at Bengaluru considered Writ Petition No. 14541 of 2023 (T-IT) filed by Open Silicon Research Private Limited against the Assessment Unit, National Faceless Assessment Centre, Income-Tax Department and other respondents. The petitioner challenged the assessment order dated 26.10.2022, the computation sheet, demand notice and subsequent correspondence issued by the Dispute Resolution Panel (DRP). The petitioner also sought consequential directions requiring the Assessing Officer to follow the procedure contemplated under Section 144C of the Income-tax Act, 1961.
The petitioner submitted that it was an eligible assessee under Section 144C(15)(b)(i). After receiving the draft assessment order, the petitioner filed objections before the DRP within the stipulated period. The acknowledgment evidencing filing of objections before the DRP was produced as Annexure-H. It was, however, admitted that a copy of the objections was not filed before the Assessing Officer as required under Section 144C(2)(b)(ii). The petitioner described this as a bona fide lapse.
While the objections were pending before the DRP, the Assessing Officer proceeded to pass the assessment order dated 26.10.2022. Subsequently, on 15.05.2023, the DRP issued directions to the Assessing Officer under Section 144C. The petitioner contended that, in view of the DRP directions and the procedure prescribed under Section 144C(13), the assessment order was required to be set aside and the proceedings continued in accordance with the statutory procedure.
