High Court stays assessment order, directs petitioner to approach Dispute Resolution Panel The High Court entertained a challenge to a draft assessment order under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. An ...
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High Court stays assessment order, directs petitioner to approach Dispute Resolution Panel
The High Court entertained a challenge to a draft assessment order under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. An interim stay order was granted, allowing the petitioner to approach the Dispute Resolution Panel within 30 days as per Section 144C(2) of the Act. The Court refrained from delving into the merits, emphasizing the petitioner's right to seek resolution before the Panel. The petitioner was directed to file a petition before the Panel by a specified date, with the Court disposing of the writ petition without costs and granting liberty to address the Panel within the given timeframe.
Issues: Challenge to draft assessment order under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. Entitlement to agitate matter before Dispute Resolution Panel within 30 days of draft assessment order.
Analysis: The petitioner challenged the draft assessment order dated 31.12.2017 under Section 144C(1) of the Income Tax Act, 1961 for the assessment year 2015-2016. The High Court entertained the writ petition and granted an interim stay order on 22.01.2018. The petitioner raised various contentions on the merits of the draft assessment order. However, the petitioner's counsel acknowledged the provisions under Section 144C(2) of the Income Tax Act, 1961, requesting the liberty to approach the Dispute Resolution Panel and the Assessing Officer.
The respondent filed a counter affidavit addressing the merits of the matter. The Court refrained from expressing any view on the merits, considering the petitioner's intention to approach the Dispute Resolution Panel. The respondent's counsel highlighted the necessity for the petitioner to file a petition before the Dispute Resolution Panel within 30 days from the date of the draft assessment order to seek resolution.
Acknowledging that the writ petition was filed within the stipulated 30-day period from the date of the draft assessment order, the Court emphasized the importance of allowing the petitioner to present the matter before the Dispute Resolution Panel. The Court directed the petitioner to file the necessary petition under Section 144C(2)(b) before the Dispute Resolution Panel by 12.11.2018. It was clarified that the Dispute Resolution Panel should evaluate the petition and issue appropriate orders on merits and in compliance with the law, disregarding the period of limitation due to the pendency of the writ petition with an interim stay order. The Court disposed of the writ petition without costs, concluding the matter with the liberty granted to the petitioner to address the Dispute Resolution Panel within the specified timeframe.
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