This document examines the Income Tax Appellate Tribunal (ITAT) decision concerning the appeal filed by Urvashi Narain against the final assessment order for the assessment year 2017-18. This appeal challenges the procedures followed by the Income Tax Office, Ward International Taxation-2(1)(2), Delhi, under Sections 143(3) and 144C(13) of the Income Tax Act, 1961.
The appeal centers on a significant procedural issue where the final assessment order was claimed to be invalid due to non-compliance with the Dispute Resolution Panel’s (DRP) directions. Initially, an assessment was made which the assessee claimed was inadvertently treated as a draft. Subsequently, the same figures were used in a draft assessment order that led to objections and a final order that seemingly disregarded the DRP’s directions.
Urvashi Narain’s counsel argued that the final assessment order was a nullity due to its failure to comply with the DRP’s directives, rendering it invalid and without legal basis. The tribunal reviewed the case under the lens of statutory compliance and the correctness of procedural conduct by the assessing officer. References were made to several precedents to ascertain the limits of authority under the Income Tax Act.
The ITAT’s decision to set aside the assessment order underscores the critical importance of adhering to procedural norms and the DRP’s instructions. This case highlights the necessity for transparency and accuracy in the assessment process, ensuring that taxpayers’ rights are safeguarded against procedural discrepancies.
Order pronounced in the open court on 2023-05-31.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform