Case Law Details
Multicoreware India P. Ltd Vs Assessment Unit Income Tax Department (Madras High Court)
The Madras High Court recently rendered a crucial judgment in the case of Multicoreware India P. Ltd vs. Assessment Unit Income Tax Department. The court addressed the validity of an Income Tax assessment order issued while objections were pending before the Dispute Resolution Panel (DRP).
The petitioner had filed its income tax return for the assessment year 2021-22, following which a notice was issued under Section 143(2) of the Income Tax Act. Despite the petitioner’s objections filed with the Dispute Resolution Panel, the Income Tax Department proceeded to issue a draft assessment order under Section 144C(1) of the Act. The petitioner’s objections, duly acknowledged by the Dispute Resolution Panel, were pending consideration when the impugned assessment order was issued.
While the respondents argued that the petitioner should have informed the National Faceless Assessment Unit about the objections filed before the Dispute Resolution Panel, the court emphasized the prejudice caused to the petitioner by the premature issuance of the assessment order. Given that the objections were pending and the impugned order was subsequent to the filing of objections, the court concluded that the assessment order lacked sustainability.
In light of the foregoing analysis, the Madras High Court quashed the impugned assessment order and directed the assessing officer to await the decision of the Dispute Resolution Panel before issuing a fresh assessment order.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
