Case Law Details
De Diamond Electric India Private Limited Vs Assessment Unit, National faceless Assessment Centre (Delhi High Court)
The case of De Diamond Electric India Private Limited vs. Assessment Unit, National Faceless Assessment Centre before the Delhi High Court concerns the challenge against a final assessment order dated November 16, 2023, passed under various sections of the Income Tax Act, 1961, along with notices of demand and penalty for the assessment year 2020-21.
The petitioner argued that they had filed detailed objections before the Dispute Resolution Panel (DRP) on October 27, 2023, and thus, the National e-Assessment Assessment Centre/Assessing Officer had no jurisdiction to pass the final assessment order without waiting for directions from the DRP. However, the petitioner acknowledged that they had inadvertently failed to inform the Assessing Officer regarding the filing of objections under Section 144C(2)(b)(ii) of the Act.
The court issued notice to the senior standing counsel representing the revenue department, who stated that the petitioner, upon receipt of the draft assessment order, was required to file objections before the Assessing Officer in addition to the DRP. Furthermore, if no objections were received within the specified time period, the Assessing Officer was obligated to complete the assessment based on the draft assessment order.
Referring to a similar case, Pepsico India Holdings Private Limited vs. Assessment Unit Income Tax Department National Faceless Assessment Centre & Ors., the court noted that once objections were filed by the assessee against a draft assessment order within the prescribed time limit, the rest of the procedure should be followed, and the final assessment order should be passed by the Assessing Officer in accordance with the DRP’s directions.
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