Perfetti Van Melle (India) Pvt. Ltd. v. ACIT (2020) 81 ITR 79 (SN) (Delhi) (Trib)

S. 144C : Reference to dispute resolution panel -Draft assessment order – Proceedings concluded – Assessing Officer quantifying taxable income and determining tax payable and issuing and serving demand notice —Subsequent proceedings and orders non est — Subsequent participation would not debar assessee to raise validity before appellate authority.

Tribunal held that t on December 27, 2018, the Assessing Officer had quantified the taxable income and determined tax payable and had issued and served the demand notice. This action of the Assessing Officer had brought the proceedings to an end and the proceedings initiated under section 144C of the Income-tax Act, 1961 stood concluded. There is no provision in the Act for a proposed draft notice of demand and secondly, whether the demand had been entered in the demand and collection register or the order uploaded in the Department was an internal matter of the Department and could not be taken into consideration to decide whether the demand notice issued along with the order dated December 27, 2018 completed the proceedings. The Assessing Officer had bypassed sub-sections (3) and (13) of section 144C . The proceedings culminated on December 27, 2018 when the demand notice was issued and served upon the assessee along with the penalty notice under section 274 and, therefore, all the subsequent proceedings and orders become non est.( AY.2015-16)