2026 (7) TMI 1819

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....rit petition, the petitioner has assailed the assessment order dated 11.03.2026 passed by respondent no.1 under Section 143(3) read with Section 144C(3) and Section 144B of the Income Tax Act, 1961 (hereinafter referred to as "the Act of 1961") and the consequential demand notice of even date issued under Section 156 of the Act of 1961. 4. Learned counsel for the petitioner argued that during the course of the assessment proceedings, the Assessing Officer passed the Draft Assessment Order under Section 144C(1) of the Act of 1961 on 03.02.2026, in furtherance whereof, the petitioner had filed its objections before the Dispute Resolution Panel (hereinafter referred to as „DRP‟) on 26.02.2026. He submitted that though an intimat....

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....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 such breach on the part of the petitioner to comply with Section 144C(2)(b) has resulted in adverse consequence to it inasmuch as a demand has been raised without the objection filed by the petitioner before the DRP being considered. 10. The scheme of Section 144C of the Act of 1961 provides that once the draft ord....

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....ence (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 files his objections before DRP either physically or electronically (which we are informed is presently in physical mode), the Registry/Secretary of DRP shall not accept the same, unless a proof to the effect that the same has also been sent/served to the AO is enclosed. That would ward of....