JYOTHY LABORATORIES LTD.,MUMBAI vs. DCIT, CHENNAI

We heard Ms.Arpita, the Ld. Counsel for the assessee and Shri Arun C Bharath, Ld. Departmental Representative. Admittedly the Dispute Resolution Panel refused to consider the objection filed by the assessee on the ground that the objection was filed after the delay of one day. The application filed by the assessee under Section 154 of the Income Tax Act, 1961 (in short “the Act”) was also rejected by the Dispute Resolution Panel on the ground that it has no power to recall its earlier order. The fact remains is that the assessee received the draft assessment order on 04.04.2015, the objection ought to have been filed on or before 04.05.2015. Admittedly 04.05.2015 was a public holiday on account of Buddha Purnima. It is also not in dispute that the assessee filed the objection on 05.05.2015 i.e., the next working day. While rejecting the objection filed by the assessee under Section 154, the Dispute Resolution Panel admitted that the objection of the assessee should have been considered since the same was filed within the period of limitation. However, the Dispute Resolution Panel expressed its inability to consider the same.

In view of this factual situation, it is obvious that the objection was filed by the assessee within the period of 30 days as provided under Section 144C of the Act. Therefore the Dispute Resolution Panel ought to have considered the same on merit. This tribunal is unable to uphold the order of the lower authority since the objection was admittedly filed within the period of limitation.

Accordingly, the order of the assessing officer is set aside and the entire issue is restored back to the file of the Dispute Resolution Panel. The Dispute Resolution Panel shall consider the objection of the assessee on merit after giving a reasonable opportunity to the assessee and thereafter decide the same in accordance with the law.