2025 (4) TMI 1893

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..../s 143(3) r.w.s. 260 of the Income Tax Act, 1961 (hereinafter referred as 'the Act'). 2. The grounds of appeal taken by the assessee read as under:- "1. That, on the facts and circumstances of the case and in law, final assessment order dated 31 August 2022 passed under Section 143(3) r.w.s. 144C(13) of the Income-tax Act, 1961 ('the Act') by Learned Assistant Commissioner of Income-tax, Circle 25(1), Delhi (herein referred to as 'Ld. AO') is bad in law. 2. That, on the facts and circumstances of the case and in law, Ld. AO as well as Hon'ble DRP have erred in not admitting additional claim filed by the Appellant during the course of proceedings with regard to exemption of compensation received by th....

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....reasons. The powers of DRP are co-terminous with the CIT(A), including the power to confirm, reduce or enhance the variation proposed and to consider the issues not agitated by the Assessee in the objections. In fact, under Section 144C, the Dispute Resolution Panel can issue directions as it thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment and the Dispute Resolution Panel can confirm, reduce or enhance the variations proposed in the draft order. It is specifically stipulated in Section 144C that every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer. This is akin to the Assessing Officer giving effect to an order passed by the Appellate Authority or the ....

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....the Act of 2013. The view is also supported by CBDT circular No 36/2016 dated 25 October 2016. We note that section 96 of the Act of 2013 inter alia provides that income tax shall not levied on any award or agreement under the Act of 2013 and the CBDT Circular No. 36 of 2016 dated 25.10.2016 directs that:- "The matter has been examined by the Board and it is hereby clarified that compensation received in respect of award or agreement which has been exempted from levy of Income-tax vide section 96 of the RFCTLARR Act shall also not be taxable under the provisions of Income Tax Act, 1961 even if there is no specific provision of exemption for such compensation in the Income Tax Act, 1961." 6. In regard to this issue, we are of the....