TaxTMI 
TaxTMI 
2026 (9) TMI 758
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....inafter referred to as 'the Act'). 2. At the outset, Ld. AR of the assessee have assailed the validity of the assessment order passed by the AO dated 26.09.2024. As per the assessee, the impugned order was passed beyond the time prescribed u/s. 144C (2) r.w.s. 144C (4) of the Act and hence bad in law being time-barred. 3. Relevant facts are that the assessee is a Company engaged in the business of manufacturing of polypropylene based compounds, engineering plastics compounds and thermoplastic elastomers compounds. Assessee had filed its return of income (ITR/RoI) for the relevant assessment year admitting income of Rs. 39,35,57,670/- on 15.02.2021 which ITR was selected for scrutiny. The AO observing that the assessee had internationa....
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....djustment of Rs 1,75,12,825/- in the sale & purchase of goods as proposed by TPO; and disallowed claim on account of research and development to the tune of Rs. 1,25,90,513/-; and thus, computed the total income at Rs. 42,36,61,008/- in place of returned income of Rs. 39,35,57,670/-. Aggrieved the assessee is before this Tribunal and has raised the legal issue challenging the final order passed by the AO to be barred by limitation. 4. In this regard, the Ld. AR submitted that as per sub-section (2) of section 144C, the eligible assessee has an option to file, either his acceptance of the variation proposed in the draft assessment order of the AO, or if he objects to the proposal then he has to file objection before the DRP as well as bef....
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....bjection against the variation proposed by the AO, hence, the time limit prescribed under sub-section (4) of section 144C does not come into play; and therefore the legal issue raised by assessee is devoid of merits. He further pointed out that since there was delay in filing of objection before the DRP, rightly the DRP couldn't condone the delay and hence, in the facts and circumstances of the case, the AO had to pass the final assessment order after receipt of the order of the DRP. Hence, the final assessment order passed in the facts of the case dated 26.09.2024 cannot be faulted and the assessee cannot take advantage of his own wrong. The Ld. DR also brought to our notice that in a similar case the Hon'ble Jurisdictional High Court in t....
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.... 25.10.2023, informing him that it was moving a petition before Dispute Resolution Panel (DRP) and also enclosing the grounds of objection before DRP assailing inter-alia the downward adjustment of Rs 1,75,12, 825/- in the sale & purchase of goods proposed in the TPO order and as adopted by AO in the draft assessment order dated 25.10.2023, which fact/communication has been taken note by the AO, who reproduced the same at Page 4 of the impugned Order. Pursuant to the ibid response from Assessee, the AO asked the assessee to furnish copy of Form 35A i.e. objection filed before DRP, which assessee didn't respond. The AO issued letters on 07.02.2024 & 24.02.2024, which was replied by Assessee on 24.02.2024, wherein assessee inter alia submitte....
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....he facts of the case is devoid of merits and hence, rejected. Having held so, we find that the DRP has rightly didn't condone the delay in filing of the objection before it. In such a scenario, as held by the Hon'ble Madras High Court in the case of Inno Estates Pvt Ltd. V. DRP-2 supra, the impugned order of the AO though stated as an order u/s. 143(3)/144C(13) of the Act, is not an order pursuant to the direction of the DRP, but an order of assessment simplicitor and hence, an appeal lies before the CIT(A), who is the first appellate authority. Hence, the instant appeal filed by the assessee against the assessment order passed u/s. 143(3) is not maintainable. However, for the interest of justice and fair play, considering the facts discuss....