There can be no estoppel against the law. Though the assessee in his revised return had claimed that he was a non-resident, the draft order made by the first respondent upon considering the material on record h categorically held that this claim was incorrect and the assessee was a “resident in India” and not a “non-resident”. This is the Department’s finding, and the Department cannot distance itself from it merely because the assessee may have claimed otherwise in his revised returns. The assessee has now accepted the position that he is a “resident in India” and, based upon such acceptance, submitted that the authorities need not consider his revised return because the same proceeded on an erroneous premise that the assessee was a “non-resident”. Accordingly, the assessee cannot now be held as an “eligible assessee” as defined under S.144C(15). If the assessee is not an eligible assessee, then there is no question of applying the procedure under S. 144C to the assessee. Order is set aside. (AY. 2021-22)
Aldrin Alberto Araujo Soares v. DCIT (2024) 340 CTR 99 / 239 DTR 305 / 162 Taxmann.com 186 (Bom)(HC)
S. 144C : Reference to dispute resolution panel-Transfer pricing-Draft assessment order-Eligible assessee-No estoppel against the law-AO have to assess the original return in terms of S. 143(1) or other relevant provisions of the IT Act and make an appropriate assessment order-Order is set aside. [S.143(1), 144C(15)(b), Art. 226]