OPEN SILICON RESEARCH PRIVATE LIMITED Vs. ASSESSMENT UNIT

JUDGEMENT

(1.) Petitioner has sought for quashing of the assessment order dtd. 26/10/2022 at Annexure-A1; computation sheet at Annexure-A2; demand notice at Annexure-A3 and the correspondence dtd. 30/6/2023 issued by respondent No.3 at Annexure-A4. Petitioner has also sought for an allied prayer which is consequential in nature to direct the 1st respondent to pass an order taking note of the procedure under Sec. 144C of the Income Tax Act, 1961 (for short 'the Act').

(2.) Petitioner submits that he is an eligible assessee in terms of Sec. 144C (15)(b)(i) and that in response to the draft order, objections were filed in terms of Sec. 144C (2)(b) before the Dispute Resolution Panel (fort short 'DRP'), as is evident from Annexure-H. Annexure-H is the acknowledgment for having filed objections to the draft assessment order before the DRP. It is admitted however that copy of the said objections were not filed before the Assessing Officer in terms of Sec. 144C(2)(b)(ii) of the Act, which was however is a bonafide lapse on the part of the assessee. Petitioner submits that in the meanwhile, the Assessing Officer has proceeded to pass an assessment order which has been assailed and copy of which is produced at Annexure-A1. The said order, it is stated was passed on 26/10/2022.

(3.) It is submitted that subsequently, the DRP has issued directions to the Assessing Officer as per Annexure- N on 15/5/2023. It is submitted that though directions were issued by the DRP at a subsequent point of time, in light of the obligation under Sec. 144C (13), the assessment order will have to be set aside and directions be taken note of and order be passed in terms of the procedure under Sec. 144C (13) of the Act. It is further submitted that in terms of Annexure-A4, the DRP has declared that the directions made by it to the Assessing Officer have become infructuous and non-est is required to be set aside. The observations at paragraph No.3.0 at Annexure- A4 is extracted as follows: