Assessment order quashed as tribunal finds lack of jurisdiction. Assessee's appeal allowed.

The Tribunal found the assessment order dated 20.8.2010 to be invalid due to lack of jurisdiction and quashed it. The appeal was allowed in favor of the assessee, emphasizing that the Assessing Officer exceeded authority in passing the order under section 144C(13) without proper objection under section 144C(2). The Tribunal did not address the dismissal of the appeal by the Commissioner of Income Tax (Appeals) but advised the assessee to pursue legal remedies as per law.

---

---

Issues involved:
Validity and maintainability of the assessment order dated 20th Aug 2010.

Detailed Analysis:

Issue 1: Validity and maintainability of the assessment order dated 20th Aug 2010

The appeal was against the assessment order dated 20.8.2010 passed under sections 144C(13) and 143(3) for the Assessment Year 2006-07. The assessee raised concerns regarding the validity of this order. The Assessing Officer had initially passed an order under section 144C(3) on 10.2.2010, which was served on the assessee on 16.2.2010. The assessee, after being informed about a CBDT circular allowing the option to file objections before the DRP or challenge the assessment through the normal appellate channel, decided to withdraw objections filed before the DRP and opt for the latter. The DRP dismissed the objections as withdrawn and directed the Assessing Officer to complete the assessment as proposed in the draft order. The Assessing Officer then passed the order dated 20.8.2010 pursuant to the DRP's directions.

The contention was that the order dated 20.8.2010 was invalid as the objections before the DRP had been withdrawn in favor of pursuing an appeal before the Commissioner of Income Tax (Appeals). The DRP did not issue any directions on the merits of the draft assessment order, and the Assessing Officer lacked jurisdiction to pass the order under section 144C(13) in the absence of any objection under section 144C(2). The second order on 20.8.2010 was deemed unnecessary and would result in unnecessary litigation. The Tribunal held that the order dated 20.8.2010 was without jurisdiction and quashed it, allowing the appeal filed by the assessee.

In conclusion, the Tribunal found the order dated 20.8.2010 to be invalid due to lack of jurisdiction and quashed it. The Tribunal did not address the dismissal of the appeal by the Commissioner of Income Tax (Appeals) in the present proceedings but stated that the assessee could pursue legal remedies as per law.

This detailed analysis covers the issues related to the validity and maintainability of the assessment order dated 20th Aug 2010, providing a comprehensive understanding of the legal judgment delivered by the Appellate Tribunal ITAT Mumbai.

---