TaxTMI 
TaxTMI 
2023 (6) TMI 346
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....tset, learned counsel appearing for the assessee drew out attention to ground no. 5 and urged the Bench to decide the appeal on this preliminary issue. 3. Ground no.5 reads as under: On the facts and circumstances of the case, the learned A.O has erred both on facts and in law in not complying with the directions of DRP has held that once the final order dated 15.09.2021 has been passed under Section 143(3) of the Act, the same cannot be annulled/modified/amended at a subsequent date on the ground that the same order passed inadvertently. 4. Briefly, the facts relating to this issue are, the assessee is a non-resident individual. For the assessment year under dispute, assessee filed her return of income on 23.10.2017 declarin....
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....d, the final assessment order has to be declared as invalid and set aside. 7. In support of such contention, learned counsel for the assessee relied upon the following decisions: 1. M/s. Olympus Medical Systems Pvt. Ltd. Vs. the ACIT, Circle 3(1), Gurgaon; 2. M/s. Global One India Pvt. Ltd. Vs. DCIT, Circle-12(1), New Delhi; 3. M/s. Software Paradigms Infotech Pvt. Ltd. Vs. ACIT, Circle 1(2), Mysore; & 4. Flextronics Technologies (India) Pvt. Ltd. Vs. ACIT, Circle-3(1)(1), Bangalore. 8. Learned Departmental Representative submitted, the final assessment order cannot be declared as invalid as the Assessing Officer has passed it complying with the directions of learned DRP. 9. Drawing our attention....
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.... was passed in this case on 15.09.2021 inadvertently. The order may be read as draft order under Section 144C of the Income-Tax Act,1961." 13. It is evident, while issuing directions, learned DRP considered it appropriate to address only ground 4(ii) raised by the assessee, whereas, all other grounds were not adjudicated. Learned DRP's directions qua ground no.4(ii) are as under: "3.1 In the instant case, the AO has passed the final order u/s 143(3) of the Act on 15/09/2021 for the assessment year under reference. The said assessment order states as follows: "Assessed at total income of Rs.6,31,98,895/-. Issue necessary forms. Give credit for pre-paid tax after verification. Charge interest as applicable under the Act. ....
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....further opportunity of being heard to the assessee within the prescribe3d time period. Thus, under the scheme laid down in section 144C of the Act, the DRP can issue directions on objections filed by the eligible assessee against the draft assessment order passed under sub-section (1) of section 144C, following which the Assessing Officer shall pass the final assessment order in conformity with such directions under sub-section (13) of section 144C. 3.5 In the present case, however, as seen above, the final assessment order has already been passed by the Assessing Officer vide the above-mentioned order under section 143(3)/144C(3) dated 30.09.2021. Under such circumstances, the operation of sub-section (5) of section 144C of the Ac....
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....he assessment order under section 143(3) of the Act on 15.09.2021, the same cannot be annulled, modified, amended at a subsequent date, the only course left open to the Assessing Officer was to implement the directions of learned DRP in letter and spirit and drop the assessment proceedings and nothing else. 16. As per the scheme of the Act, once an assessment order has been passed under Section 143(3) of the Act in respect of any assessment year, the Assessing Officer cannot tinker with that assessment. Of course, he can either reopen the assessment or rectify the assessment order after strictly complying with the conditions of section 147 and 154 respectively. The statue does not confer any powers on the Assessing Officer to either with....