Calcutta HC quashes Faceless Assessment Order as it was passed without waiting for the direction to be made by the DRP [Read Order]

Faceless Assessment Order - Calcutta High Court - DRP - Taxscan

The Calcutta High Court quashed the Faceless Assessment Order as it was passed without waiting for the direction to be made by the DRP.

The petitioner, Lexmark International (India) Private Limited received a Draft Assessment Order under Section 144C of the Act against which he filed objection on 23rd June, 2021 before the Dispute Resolution Panel (DRP) against the additions proposed in the said Draft Assessment which was to be filed within 30 days from date, but it is the case of the petitioner that in view of the circular of the Central Board of Direct Tax (CBDT) dated 25th June, 2021 the last date of filing such objections under that section was extended till 31st August, 2021 and it is the case of the petitioner that without allowing the aforesaid period of expiry as per the circular of the CBDT the respondent Assessing Officer should not have passed the impugned assessment order and further that without waiting for the direction to be made by the DRP on such objection which is mandatory provision apart from the circular of the Board CBDT which is binding upon the Assessing Officer being a subordinate authority under Section 19 of the Income Tax Act, the impugned order is bad in law.

Mr. Chowdhury, learned advocate appearing for the respondents is not in a position to defend and justify the action of the respondents of passing the impugned assessment order in disregard to the aforesaid circular of the CBDT and also the action of the respondent Assessing Officer concerned in passing the impugned assessment order without getting any instruction from the DRP within the time stipulated under the statute.

The Single Bench of Justice Md. Nizamuddin set aside the impugned assessment orderand all subsequent actions or steps on the basis of such assessment. The respondent Assessing Officer shall proceed with the relevant assessment proceeding in question after getting the direction from the DRP in accordance with law.

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