TIONG WOON PROJECT & CONTRACTING (INDIA) PVT. LTD.,CHENNAI vs. THE DY.CIT, CIRCLE-4(1)(2), AHMEDABAD

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:

This appeal of the assessee is directed against the order of

the Assessing Officer, consequent to the direction of the Dispute

Resolution Panel.

2 I.T.A. No.419/Mds/16

assessee, submitted that the order of assessment is time barred.

Referring to Section 144C(5) of the Income-tax Act, 1961 (in short

'the Act'), the Ld. representative submitted that the Assessing

Officer has to pass the assessment order on or before 31.05.2015.

Since the objection was not filed within the time frame, according to

the Ld. representative, the DRP ought not to have issued any

direction at all. The Dispute Resolution Panel has no power to

condone the delay in filing he objection, consequently the direction

given under Section 144C(5) of the Act cannot be given effect to.

The Ld. representative placed his reliance on the judgment of Delhi

High Court in ST Microelectronics (P.) Ltd. v. DCIT (2016) 384 ITR

550 and also the decision of Cochin Bench of this Tribunal in

Envestnet Asset Management (India) (p.) Ltd. v. ACIT (2015) 67

SOT 217. The Ld. representative further submitted that the

objection to the draft assessment order was filed belatedly. In fact,

initially, the objection was forwarded to DRP by courier on

28.03.2015. However, the same was returned to the assessee on

the ground that no such addressee. According to the Ld.

representative, the assessee visited the Dispute Resolution Panel

office in person on 06.04.2015 and it was informed that the office

3 I.T.A. No.419/Mds/16

was closed and it was operating from Mumbai. Accordingly, the

objection was filed in Mumbai.

Departmental Representative also. The assessee claims that the

objection was filed before the DRP belatedly. However, the

objection was admittedly filed before the Assessing Officer within

the time frame. We have carefully gone through the provisions of

Section 144C of the Act. Section 144C(2) of the Act provides that

on receipt of the draft assessment order, the assessee has to file

objection within 30 days with (i) the Dispute Resolution Panel; and

(ii) the Assessing Officer. Therefore, it is obligatory on the part of

the assessee to file objection before both the Dispute Resolution

Panel as well as the Assessing Officer. In this case, admittedly, the

assessee filed objection before the Assessing Officer and there was

delay in filing the objection before the DRP, who was operating from

Mumbai. Hence, the objection was filed before the Assessing

Officer. The Assessing Officer being a public authority, has to

forward a copy of the objection along with other records, to Dispute

Resolution Panel. Therefore, merely because there was delay in

filing objection due to shifting of office premises of the Dispute

4 I.T.A. No.419/Mds/16

Resolution Panel that cannot be a reason to hold that the order

passed by the Assessing Officer consequent to the direction of DRP

is barred by limitation.

Resolution Panel. The Dispute Resolution Panel has taken care of

objection filed by the assessee. The assessee was also given an

opportunity to present its case before Dispute Resolution Panel.

Therefore, this Tribunal is of the considered opinion that the order

passed by the Dispute Resolution Panel and the Assessing Officer

are well within the period of limitation, therefore, there is no infirmity

in the direction of DRP as well as the Assessing Officer.

decision of Bangalore Bench of this Tribunal in Intel Asia Electronics

Inc. v. ADIT (2011) 30 CCH 44 to adopt the Net Book Value Plus

expenses. This Tribunal is of the considered opinion that in view of

the decision of Bangalore Bench of this Tribunal, Net Book Value

Plus expenses can be adopted for the purpose of adjustment.

Therefore, this Tribunal do not find any reason to interfere with the

direction of the DRP and the same is confirmed.

5 I.T.A. No.419/Mds/16

sd/- sd/- (�ड.एस. सु�दर �संह) (एन.आर.एस. गणेशन) (D.S. Sunder Singh) (N.R.S. Ganesan) लेखा सद�य/Accountant Member �या�यक सद�य/Judicial Member

चे�नई/Chennai, �दनांक/Dated, the 9th March, 2017.

Kri.

आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त (अपील)/CIT(A) 4. आयकर आयु�त/CIT 5. �वभागीय ��त�न�ध/DR 6. गाड� फाईल/GF.