Settled Issues against Income Tax Assessment Order passed u/s 143 not Challengable: Delhi HC dismisses appeal against Maruti Suzuki [Read Order]
It was observed that the settled issues cannot be challenged again.
Maruti Suzuki - taxscan
Maruti Suzuki - taxscan
The Delhi High Court dismissed the revenue’s appeal in the Maruti Suzuki case regarding the Income Tax Assessment Order passed under Section 143 of the Income Tax Act, 1961. It was observed that the settled issues cannot be challenged again.
Maruti Suzuki India Ltd , filed appeal under Section 260A of the Income Tax Act, 1961 (the Act), lays challenge to an order dated 09.02.2023 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 961/Del/2015 and ITA No. 1507/Del/2015, whereby the Tribunal has dismissed ITA No. 1507/Del/2015 filed by the Revenue for the Assessment Year (AY) 2010-11 and allowed ITA No. 961/Del/2015 filed by the assessee for the same AY.
The assessee is a limited company duly incorporated in the Companies Act, 1956 and is engaged in the business of manufacture, purchase and sale of automobiles and the other activities related to preowned cars, insurance, fleet management and car financing. The return of income was filed through electronic mode on 11.10.2010 declaring a total income of Rs.3255,35,58,940/- and a revised return was filed on 28.03.2012 at an income of Rs.3259,18,58,726/-.
The case was processed under Section 143(1) of the Act. Thereafter, the case was taken up for scrutiny assessment. Having taken into account the transfer pricing adjustments, a draft assessment order under Section 144C of the Act was passed on 29.03.2014 determining the income at Rs.4896,58,43,555/-. Aggrieved by it, the assessee company filed its objections against the draft assessment order before the Dispute Resolution Panel-III, New Delhi(DRP) who issued certain directions on 08.01.2015 under Section 144C(5) of the Act with regard to transfer pricing adjustments.
In pursuance to the directions of DRP, the Assessing Officer (AO) passed the impugned assessment order on 20.01.2015 under Section 143(3) read with Section 144C of the Act. Thereby, he assessed the income of assessee company at Rs.4649,87,40,313/-. Thereafter, the AO passed a rectification order under Section 154 of the Income Tax Act, thereby rectifying the error and assessing income at Rs.4591,24,91,796/-.
Mr. Abhishek Maratha, lSenior Standing Counsel for the Revenue does not contest the submission made by Mr. Vohra. In other words, it is his submission, question Nos. 1, 2, 5 and 6 is covered by the judgment of the Court in ITA No. 196/2017 for the AY-2007-08. Similarly question No. 3 and 4 is covered by judgment of the Court in ITA No. 196/2017 relatable to AY-2007-08.
A division bench of Justice V. Kameswar Rao and Justice Vinod Kumar noted that the issue is covered in terms of judgments of the Court in ITA No. 250/2005 relatable to AY-1999-2000. Q.No.7 is covered by ITA No. 976/2005 for AY 2000-01. Since all issues are discussed in earlier judgement, the court dismissed the appeal.
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