TaxTMI 
TaxTMI 
2024 (9) TMI 368
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.... Tax Act, 1961 as regards the Assessment Year 2021-2022. 2. The case that is made out by the petitioner is that it had filed return of income for the Assessment year 2021-2022 and the case of the petitioner was selected for scrutiny and the matter was referred to the Transfer Pricing Officer (TPO) for determination of Arm's Length Price. Pursuant to such reference, TPO has made transfer price adjustment and pursuant to the same, the respondent No.1 has passed the Draft Assessment Order under Section 144C (1) of the Income Tax Act. It is stated that the petitioner had filed its objections to the Draft Assessment Order before the Dispute Resolution Panel (DRP). Though copy of the said objection was required to be filed before the Assessi....
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.... when in fact the petitioner had filed objections before the DRP and had not intimated the same to the assessing officer, requires consideration. 9. The scheme at Section 144C is clear and would envisage the procedure as follows: (a) On receipt of the draft order, the assessee within thirty days may file his acceptance of the variations to the Assessing Officer; or (b) In the event he disagrees with such variations, he has to file his objections to such variations with the Dispute Resolution Panel and the Assessing Officer. 10. Once such objections have been filed, the DRP in terms of Section 144C (5) may issue directions for guidance of the assessing officer to enable him to complete the assessment. The power of the DRP is provided....
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....e. In light of the above, the assessment order at Annexure-A1 is set aside. Consequently, the computation sheet at Annexure-A2 and the demand notice at Annexure-A3 are set aside. 12. Insofar as the communication at Annexure-A4 is concerned, once the DRP issues directions, it is not concerned with the action of the Assessing Officer. The passing of directions by the DRP confirms right on the petitioner to have such directions adhered to and even otherwise, in terms of Section 144C(13), the assessing officer has no discretion. If that were to be so, the question of the DRP withdrawing its directions does not arise and accordingly, the communication at Annexure-A4 is set aside in terms of the above discussion. 13. In light of the above, pe....