INCOME TAX ACT 1961

Section 144C(2)

Assessment - Order under section 144C(2) - Order not titled as draft order, whether order or final order -

Assessee filed writ petition contending that an assessment order under Section 144C(2), instead of being titled a 'draft order', is titled as 'order' or 'final order' is not an 'irregularity' but an 'illegality' and should result in quashing thereof and the income-tax return submitted by it being deemed to have been accepted, with no further proceedings with respect to the said return being open to the revenue. Held: The assessee was unable to satisfy as to, under which provision the income-tax return can be deemed to be accepted, for the reason of the mistake in non-labelling the assessment order as a draft order by AO. Though it was contended that AO after having passed order became functus officio but it would be prefered to hear further. In the present case, AO, immediately after issuing the impugned order and within the time prescribed, issued a corrigendum to the effect that the same is not a final order but a draft order. In this case it was open to the assessee to, immediately on receipt of the corrigendum, prefer the objections to the Dispute Resolution Panel (DRP). Assessee also stated that the order was also followed by the demand notice and the penalty notice. Hence, for proper adjudication of facts, matter was remanded for consideration afresh.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2016-17

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