The Deputy Commissioner passed a draft assessment order for the AY. 2016-17 under section\u00a0143(3)\u00a0read with section\u00a0144C(1)\u00a0after making certain transfer pricing adjustments as proposed by the Transfer Pricing Officer in the order under section 92CA(4). The assessee filed an application before the Dispute Resolution Panel against the draft assessment order. The Dispute Resolution Panel passed an order dated March 20, 2021 under section 144C(5). The Assessing Officer passed an assessment order under section\u00a0143(3)\u00a0read with section 144C(13) and section 144B, dated September 30, 2021. A demand notice under section 156 and penalty notice under section 274 read with section 270A, both dated September 30, 2021 were also issued. On a writ petition, allowing the petition, the Court held that since the order of the Dispute Resolution Panel was received by the Assessing Officer only on March 20, 2021, the assessee did not fall under sub-section (1) of section 3 of the 2020 Act as the time-limit for completion of assessment did not fall within the period from March 20, 2020 to December 31, 2020. Therefore, Notification No. 20 of 2021 dated March 31, 2021 was not applicable to the assessee since it provided that if the time-limit to complete the assessment under section 144C(13) expired on any date up to March 31, 2021, the date for completion was extended up to April 30, 2021.. \u00a0That since the expiry of the time-limit for completion of assessment or for passing the order in the assessee\u2019s case under section 144C(13) of the Act on April 30, 2021 was not due to an earlier extension of time-limit by an earlier notification but was on account of the fact that the directions were issued by the Dispute Resolution Panel on March 20, 2021, Notification No.38 of 2021 dated April 27, 2021 was not applicable to the assessee. That there was no specific reference to the time-limit under section 144C(13) in Notification No. 74 of 2021 dated June 25, 2021 and there was no extension of time-limit for completion of assessment or passing of any order under section 144C(13). Since the time-limit in the assessee\u2019s case had not been extended by earlier notifications, this notification was not applicable to the assessee. Hence, there was no extension of time-limit to September 30, 2021 to pass the order under section 144C(13) against the assessee.\u00a0 That the assessment order dated September 30, 2021 passed under section\u00a0143(3)\u00a0read with sections 144C(13) and 144B for the AY. 2016-17, the consequent demand notice under section 156 and penalty notice under section 274 read with section 270A were quashed and set aside. The undertaking by the assessee to withdraw the statutory appeal filed against the assessment order was accepted. (The Central Board of Direct Taxes issued the first Notification No. 20 of 2021 dated March 31, 2021 ([2021] 432 ITR (St.) 141).\u00a0 Notification No. 38 of 2021, dated April 27, 2021 ([2021] 434 ITR (St.) 11) Notification No. 74 of 2021, dated June 25, 2021 ([2021] 435 ITR (St.) 24) \u00a0(AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 144C : Reference to dispute resolution panel-Faceless Assessment-Limitation period for completion of Assessment by Assessing Officer on receipt of order of Dispute Resolution Panel against draft Assessment order-Not falling within period from March 20, 2020 to December 31, 2020 as stipulated under Section 3(1) of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020-Assessment order barred by time and consequent demand and penalty notices set aside. [S. 143(3), 144B, 144C(1), 144C(5), 144C(13), 156, 270A, 274, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-28387","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7nR","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=28387"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28387\/revisions"}],"predecessor-version":[{"id":31818,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28387\/revisions\/31818"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=28387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=28387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=28387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}