TaxTMI 
TaxTMI 
2023 (9) TMI 838
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....manufacturing of Fertilizers, Chemicals and Paints. For the Assessment Year 2014-15, the assessee filed its original Return of Income declaring total income of Rs. 5,43,24,000/-. During the assessment proceedings, it was noticed that the assessee company had entered into certain specified domestic transactions whose value exceeded Rs. 5 Crores with related party u/s. 40A(2)(b) of the Act and also Chartered Accountant's report u/s. 92E of the Act on international/domestic transactions. Therefore the case was referred to Transfer Pricing Officer for determination of Arm's Length Pricing u/s. 92CA of the Act. The Ld. TPO determined the Arm's Length Price of the specified domestic transactions and recommended an upward adjustment of Rs. 1,89,74,894/- vide order dated 31-10-2017. After receipt of the TPO's order, the Assessing Officer passed a draft assessment order dated 15-11- 2017 u/s. 144C(1) of the Act and duly served on the assessee on 16-11-2017. 3.1. As per Section 144C(2) of the Act, within 30 days of the receipt of the draft assessment order, the assessee is supposed to (a) file his acceptance of the variations to the Assessing Officer, or (b) file his obj....
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.... the time available to the DRP for dealing with the objections of the assessee. The Hon'ble ITAT has also observed that it is important that the application is filed with the DRP as well as the AO simultaneously within 30 days of receipt of the draft assessment order. 13. Since in this case the application was filed before the AO after the specified period of 30 days and the AO has already passed the final order within the period specified in section 144C(4) on 19.12.2017, prior to receiving the application in his office, which was filed on 04.01.2018, we do not find any infirmity in passing the final order by the AO and. since, the twin conditions of filing the objection before the DRP and AO is not satisfied in this case, we dismiss the objection of the assessee has not admitted." 5. The Ld. DRP also further observed that since final assessment order dated 19.12.2017 is already passed by the Assessing Officer and served on the assessee on 21.12.2017, it is always open to the assessee to challenge the same before Ld. CIT(A) with appropriate condonation of delay, explaining the reasons of pendency of the Objection Petition before DRP and can proceed with the appeal ....
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....urther as rightly held by the Ld. DRP as against the final assessment order dated 19.12.2017 passed by the Assessing Officer u/s. 144C(3) of the Act, the assessee is open to file its appeal before Ld. CIT(A). Therefore the order passed by the Ld. DRP does not require any interference and therefore the appeal filed by the assessee is liable to be dismissed. 9. We have given our thoughtful consideration and perused the materials available on record. For adjudicating whether the objection filed by the assessee is well within the provisions of time limit prescribed under Act, Section 144C is reproduced for ready reference: "Sec.144C. REFERENCE TO DISPUTE RESOLUTION PANEL (1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee. (2) On receipt of the draft order, the eligible assessee shall, within t....
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....shall be decided according to the opinion of the majority of the members. (10) Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer. (11) No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the Revenue, respectively. (12) No direction under sub-section (5) shall be issued after nine months from the end of the month in which the draft order is forwarded to the eligible assessee. (13) Upon receipt of the directions issued under sub-section (5), the Assessing Officer shall, in conformity with the directions, complete, notwithstanding anything to the contrary contained in section 153, the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month in which such direction is received. (14) The Board may make rules for the purposes of the efficient functioning of the Dispute Resolution Panel and expeditious disposal of the objections filed under sub-section ....