S.144C IT Act | AO Not Having Info About Pending Objections Before Dispute Resolution Panel No Grounds To Sustain Final Assessment Order: Delhi HC
Live LawThe Delhi High Court has made it clear that a Final Assessment order passed by the Income Tax Authorities under Section 143 of the Income Tax Act, 1961 is not sustainable, if it is passed in ignorance of pending objections before the Dispute Resolution Panel. It said, “.notwithstanding the lack of information with the AO, if an objection has been filed and is pending before the DRP, the Assessment Order passed in ignorance of the said objections, is required to be set-aside.” The order was passed in a writ petition filed by Jackson Square Aviation Ireland Limited, challenging the Final Assessment Order passed under Section 143 read with 144C of the Act for being passed without waiting for the decision of the Dispute Resolution Panel. The AO had initially passed a Draft Assessment Order under Section 144C, proposing addition in Assessee's income on account of treating aircraft lease rentals received by it as interest income. Notwithstanding the same, the AO passed the impugned Final Assessment Order re-computing the income.