2026 (1) TMI 1207

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....ch the Assessing Officer (hereinafter referred to as 'AO') has passed on 18.12.2025, without affording an opportunity of hearing to the petitioner. 2. Apprising the facts briefly, learned counsel for the petitioner submitted that draft assessment order was passed on 06.11.2025, whereafter, the petitioner filed objections before the Dispute Resolution Panel (hereinafter referred to as 'DRP') on 05.12.2025. It is admitted that a copy thereof was not sent to the AO, bona fidely believing that the DRP shall forward the same to him. 3. While admitting that the assessee did receive a notice from the AO on 08.12.2025, the petitioner did not respond to it under the impression that the proceedings will be kept in abeyance, as it had filed obje....

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....d objections to the draft assessment order and proceeded as per Section 144C(4) of the Income Tax Act, 1961 (hereinafter the 'Act of 1961') and passed the impugned order within one month from the end of the month, in which the draft assessment order was received by the petitioner. 8. As a matter of fact, Section 144C(2)(b) of the Act, 1961 enjoins upon the petitioner to forward a copy of the objections qua the draft assessment order to the AO also, which the petitioner admittedly failed to do. According to us, it was a small breach or lapse on the part of the petitioner which has led the AO to draw a presumption that the petitioner has not filed any objection qua the proposed/draft assessment order. 9. We feel that the consequence of ....

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.... they be rendered infructuous or if not, then what will happen to the assessment order, in case the DRP accepts the objection filed by the petitioner - how will that order of the DRP be given effect to? 14. We, are therefore, of the view that the AO may be legally correct in drawing an inference (that no objection has been filed by the petitioner) because copy of the objection has not been sent to him, but factually the objections, had been filed. The impugned order so also the demand notice of even date (18.12.2025) are hereby quashed and set aside. 15. Having done so, we direct the CBDT or the concerned authorities of the Income Tax Department to ensure (by way of issuing circular or office order, etc) that as and when an assessee f....