2026 (3) TMI 946

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.... inconsonance with the order passed by the Dispute Resolution Panel (DRP)-2, New Delhi dated 30.09.2024 u/s 144C(5) and order of TPO dated 30.10.2023 passed u/s 92CA(3) of the Act. 2. The assessee has raised the following grounds of appeal before us:- "1. That on the facts and circumstances of the case and in law, the impugned order/ directions passed/issued by Ld. Assessing Officer (AO/ACIT) and Hon'ble Dispute Resolution Panel (DRP) respectively for the year under consideration is bad in law. 2. That on the facts and circumstances of the case and in law, the Ld. ACIT has erred in not disposing off the objection raised by the Assessee regarding the adjustment made to the returned income aggregating to INR 4,29,05,2....

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.... that the return of income being filed within the extended statutory due date. 8. That on the facts and circumstances of the case and in law, the Ld. ACIT erred in levying interest under section 234C of the Act on the impugned assessed income. 9. That on the facts and circumstances of the case and in law, the Ld. ACIT erred in initiating penalty under section 270A of the Act." 3. We have heard the rival submissions and perused the materials available on record. The assessee company filed its return of income for the assessment year 2021-22 on 2-3-2022 declaring total income of Rs. 55,07,00,800. The assessee company is engaged in the business of manufacturing and sale of chemicals in India and abroad. The chemicals are u....

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....he Act. The said rectification as stated earlier stood rejected by the Learned CPC. The Learned AO while completing the draft assessment and final assessment directly started with the income determined in the intimation under section 143(1) and thereafter proceeded to determine the total income accordingly. Against the draft assessment order, the assessee preferred objections before the Learned DRP objecting to the enhancement made by the Learned CPC under section 143(1) of the Act. The Learned DRP in para 14.2 of its directions stated that the adjustments made by the Learned CPC under section 143(1) of the Act does not emanate out of the draft assessment order and the same would not fall within the ambit of variations proposed by the Learn....

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.... The assessee had even filed a letter dated 11-1-2023 clearly mentioning that it was in receipt of intimation under section 143(1) of the Act and that there were certain errors in the said intimation for which rectification application was pending before the Learned CPC. The evidence in this regard is enclosed in Page 154 of the Paper Book 2 filed before us. Given all these proceedings, the Learned AO ought to have taken cognizance of the grievance of the assessee in the scrutiny assessment order framed both under section 143(3) r.w.s. 144C(1) and 143(3) r.w.s. 144C(13) of the Act. 5. In view of the above, we deem it fit and appropriate, in the interest of justice and fair play, to restore this entire appeal to the file of the Learned AO....