2024 (5) TMI 691

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....reinafter the 'Act') in pursuant to the directions of the Dispute Resolution Panel-2, Bengaluru dated 12.12.2022.. 2. At the outset, the ld.counsel for the assessee made arguments that the AO has made additions of application of income and not assessed the income on the following issues (i) Payment to non-resident u/s. 195 of the Act of Rs. 19,108/-, (ii) Payment of credit card bills i.e., reimbursement of Rs. 24,27,604/-, (iii) Purchase of units of mutual fund of Rs. 50,00,000/- & (iv) Purchase of immovable property of Rs. 2,03,56,355/-, in aggregate to Rs. 2,78,03,067/-. When it was pointed out to ld.counsel that which ground he is relying on apart from grounds of reopening or on jurisdiction, the ld.counsel for the assessee drew our a....

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....ion during 2013 to 2016. He stated that the assessee was a NRI and he resided in USA between August, 1997 to January, 2008 and then from January, 2008 to July, 2015 in Netherlands. The ld.counsel further explained that the assessee prior to his return to India made following investments:- a) Mutual funds - Rs. 50,00,000/- b) Property (currently self-occupied) - Rs. 2,03,56,355/- c) During AY 2015-16, the assessee received salary of Rs. 1,08,500/- and incurred travelling expenses of Rs. 24,27,604/-, out of which Rs. 19,36,814/- was reimbursed by TVS as part of his job profile. 3.1 The Income-tax Department received information that the assessee has received salary of Rs. 1,08,500/-, payment to non-resident u/s. ....

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....ment order dated 24.03.2022 was served on assessee on 24.03.2022 but assessee filed objections on 29.04.2022, which is beyond the prescribed period, as prescribed u/s. 144C(2) of the Act i.e., beyond 30 days and hence, rejected as not-maintainable. The relevant para 4 of the DRP order dated 12.12.2022 reads as under:- "4. In view of the provisions of sub section (2) of section 144C of the Income Tax Act, 1961 read with rule 4 of the Income Tax (Dispute Resolution Panel) Rules, 2009, it is clear that the assessee needs to file the objection and paper book in person or through his agent before the DRP as well as before the Assessing Officer within 30 days from the date of receipt of Draft Assessment Order." 3.3 Consequently, the A....

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....e DRP and DRP dismissed the objections on the ground that objections were not filed within 30 days time limit. The ld.counsel stated that the draft assessment order was received after 30 days of the date of order and this fact has been overlooked by DRP. It was contended that as per section 144C(2) of the Act, the eligible assessee on receipt of draft order, shall, within thirty days from the date of receipt of the draft order will file his objections against the order of the AO i.e., draft assessment order. He stated that the language in the provisions of section 144C(2) of the Act is very clear that the time limit of 30 days start from the date of receipt of the draft assessment order. The ld.counsel for the assessee stated that the draft....