Full Judgment Text
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 6484/2021
SRF LTD .... Petitioner
Through: Mr. Satyen Sethi, Advocate with
Mr. Arta Trana Panda, Advocate.
versus
NATIONAL FACELESS ASSESSMENT CENTRE, DELHI
& ANR. ... Respondents
Through: Ms. Vibhooti Malhotra, Advocate.
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% Date of Decision: 14 July, 2021
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
J U D G M E N T
MANMOHAN, J: (Oral)
CM APPL. 20376/2021 (exemption)
1. Allowed, subject to all just exceptions.
2. Accordingly, the application stands disposed of.
W.P.(C) 6484/2021 & CM APPL. 20375/2021
3. Present petition has been heard by way of video conferencing.
4. Present writ petition has been filed challenging the final assessment
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order dated 30 June, 2021 passed under Section 143(3) read with
Sections 144C(3) and 144B of the Income Tax Act, 1961 [‘the Act’] and
the demand notice of Rs. 56,76,09,018/- issued under Section 156 of the
Signature Not Verified
W.P.(C) 6484/2021 Page 1 of 4
Digitally Signed
By:KRISHNA BHOJ
Signing Date:15.07.2021
20:27:06
Act for the Assessment Year 2017-18. Petitioner also seeks directions to
the Respondents not to take any action or initiate further proceedings in
furtherance of the impugned assessment order and demand notice.
5. Learned counsel for the Petitioner states that vide draft assessment
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order dated 05 May, 2021 issued under Section 144C(1) of the Act, the
total income of the Petitioner was proposed at Rs. 450,02,37,902/-. He
points out that under section 144C(2), the Petitioner had thirty days (30
days) to file objections to Dispute Resolution Panel [DRP] against the
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draft order, i.e. by 04
June 2021.
6. He emphasises that since the office of Petitioner was closed due to
lockdown in Delhi, therefore, objections to the draft order could not be
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filed within thirty days (30 days) of receipt of the draft order, i.e. by 04
st
June, 2021 and were filed on 21
June, 2021.
7. He points out that the CBDT by Circular No.12 of 2021 and
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June 2021 provided relaxation in
Notification No.74/2021 dated 25
respect of time limits of certain compliances and vide para 1 of the
circular, time limit to file objections to DRP, where the same were to be
st st
filed by 01 June 2021 or thereafter were extended to 31 August, 2021
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and the time limit for completion of assessment was extended to 30
September 2021.
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June
8. He states that in view of Circular No.12 of 2021 dated 25
2021, the objections under section 144(2) of the Act to the draft order
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dated 05 May 2021, filed on 21
June 2021 were within time.
9. He points out that the Respondent No.1 erred in considering that
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the Petitioner had opted not to file objections to the draft order dated 05
May, 2021 and in complete ignorance of the time limits extended by
Signature Not Verified
W.P.(C) 6484/2021 Page 2 of 4
Digitally Signed
By:KRISHNA BHOJ
Signing Date:15.07.2021
20:27:06
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Circular No. 12/2021 and Notification No.74/2021 both dated 25 June
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2021, passed the impugned assessment order dated 30
June 2021 under
section 143(3) read with sections 144C(3) and 144B of the Act and
thereby, assessed the total income at Rs.450,02,37,902/- and raised a
demand of Rs.56,76,09,018/- vide demand notice issued under section
156 of the Act.
10. He contends that since the objections to draft assessment order
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May 2021 were filed and the same were pending disposal with
dated 05
the DRP, the Respondent No.1 had no jurisdiction to pass the impugned
assessment under Section 143(3) read with section 144C (3). He
emphasises that the mandate of Section 144C(13) of the Act is that on
receipt of the directions of DRP under section 144C(5) of the Act, the
Assessing Officer (Respondent No.1 herein) shall complete the
assessment in conformity with the directions of the DRP which was not
done in the present case.
11. Issue notice. Ms, Vibhooti Malhotra accepts notice on behalf of
respondents. She states that in view of the facts of the present case, she
has no objection if the present matter is remitted to the DRP.
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12. Keeping in view the aforesaid, the final assessment order dated 30
June, 2021 as well as the demand notice of Rs. 56,76,09,018/- (Rupees
Fifty Six Crores Seventy Six Lakhs Nine Thousand and Eighteen only)
issued under Section 156 of the Act for the assessment year 2017-18 is
quashed and the matter is remitted to the DRP for consideration under
Section 144(C) of the Act. Thereafter, the assessment order shall be
passed in accordance with the procedure stipulated under Section
144B(1) (xxix) to (xxxi) as well as Section 144(C) of the Act.
Signature Not Verified
W.P.(C) 6484/2021 Page 3 of 4
Digitally Signed
By:KRISHNA BHOJ
Signing Date:15.07.2021
20:27:06
13. Accordingly, the present writ petition along with pending
application stands disposed of.
14. The order be uploaded on the website forthwith. Copy of the order
be also forwarded to the learned counsel through e-mail.
MANMOHAN, J
NAVIN CHAWLA, J
JULY 14, 2021
TS
Signature Not Verified
W.P.(C) 6484/2021 Page 4 of 4
Digitally Signed
By:KRISHNA BHOJ
Signing Date:15.07.2021
20:27:06