Case Law Details
Defsys Solutions Pvt Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi held that passing of final assessment order without complying with the terms of section 144C of the Income Tax Act, 1961 is untenable in law.
Facts- In the present case, the entire quarrel revolves around the fact that the Assessing Officer has mentioned “Assessed u/s 143(3) r.w.s 144C(13) of the Act” and directed to calculate tax and charge interest as per the I.T. Act and further directed to give credit for prepaid taxes. As if this was not enough, he initiated penalty proceedings u/s 271AAB(1A)(b) r.w.s 274 of the Act.
Conclusion- Hon’ble Delhi High Court held that the failure to pass a draft assessment order under Section 144C (1) of the Act would result in rendering the final assessment order “without jurisdiction, null and void and unenforceable.
Hon’ble Gujarat High Court in the case of C-Sam (India) has held that noncompliance with the terms of Section 144C of the Act is merely an ‘irregularity’. The Gujarat High Court held that it was of ‘great importance and mandatory’.
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