Delhi High Court - Orders
Banyan Real Estate Fund Mauritius vs Asstt. Commissioner Of Income Tax & Anr on 24 May, 2022
Author: Manmohan
Bench: Manmohan, Manmeet Pritam Singh Arora
$~32
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4652/2022
BANYAN REAL ESTATE FUND MAURITIUS ..... Petitioner
Through: Mr. S. Ganesh, Sr. Advocate with Mr.
Satyen Sethi and Mr. Arta Trana
Panda, Advocates.
versus
ASSTT. COMMISSIONER OF INCOME TAX & ANR.
..... Respondents
Through: Mr. Puneet Rai, senior standing
counsel for the Revenue.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
ORDER
% 24.05.2022 CM APPL. 24684/2022 Present application has been filed by the Revenue seeking clarification of the order dated 31st March, 2022.
Learned counsel for the Respondent-Applicant states that this Court, vide its Order dated 31st March, 2022 in the present case, permitted the Assessing Officer to pass the assessment order and further directed that the same shall not be given effect to until further orders of this Court.
He states that the that re-assessment proceedings under Section 147 of the Income Tax Act, 1961 ('the Act') are pending in the Petitioner/Assessee's case for Assessment Year 2014-15 and a Draft Assessment Order under Section 147 read with Section 144C of the Act dated 31st March, 2022 was passed in the Petitioner/Assessee's case and the Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:25.05.2022 18:05:30 same was served on the Petitioner electronically, through ITBA portal. As per the provisions of the Act, the Assessee is required to submit acceptance of the draft assessment order or file objections, if any, before the DRP within 30 days of receipt of the order. However, the Petitioner/Assessee has neither accepted the draft order nor filed any objection before the DRP.
He states that the Petitioner has contested the issuance of draft assessment order vide its letter dated 6th April, 2022, stating that this Court only permitted the passing of the assessment order which in the instant case is the draft assessment order and the same cannot be served upon the Assessee since the service would tantamount to giving effect to draft assessment order.
Issue notice. Mr. Satyen Sethi, Advocate accepts notice on behalf of the Petitioner/Non-applicant.
Mr. S. Ganesh, learned senior counsel for the Petitioner/Assessee states that the letter dated 6th April, 2022 was issued under a mistaken impression. He further states that the Petitioner has clarified its stand vide its letter dated 28th April, 2022 and e-mail dated 18th May, 2022. Copies of the same are taken on record. The relevant portion of the e-mail dated 18th May, 2022 is reproduced hereinbelow:-
"... Thus this issue is already sub-judice in our Writ Petition pending before the High Court, and the assessment order has expressly been made subject to the final orders to be passed by the High Court. The assessee has accordingly not filed any objections on this issue before the Hon'ble DRP and the same has already been intimated to DRP vide letter dated 29.04.2022 (copy enclosed).
As per section 144C(4) of the Act, your honour is required to pass a final order within 1 month from the end of the month in Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:25.05.2022 18:05:30 which the period of filing of objection expires - i.e. 31st May, 22. In view of the matter being sub-judice before the Hon'ble Delhi DC, the assessee has no objection to the passing of the final order, by the office of your honour, as long as it is not given effect to as per the directions of the Hon'ble Delhi High Court. However, the same may not be construed as a waiver or acceptance by the assessee of the denial of the DTAA benefit by your good office, we reserve our right to object to the legality and validity of the denial of the DTAA benefit in the final assessment order for which purpose we shall be moving an application or amendment of the writ petition after the final assessment order has been passed and served on the assessee. A copy of the letter filed before the Hon'ble DRP is being before your honour for your records."
In response to a pointed query, Mr. S. Ganesh clarifies that the Petitioner has elected not to file his objections before the DRP.
In view of the aforesaid election, this Court directs the Assessing Officer to pass the final assessment order forthwith. However, as directed in the order dated 31st March, 2022, the same shall not be given effect to and shall be subject to further orders of this Court.
With the aforesaid directions, the present application stands disposed of.
MANMOHAN, J MANMEET PRITAM SINGH ARORA, J MAY 24, 2022/msh Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:25.05.2022 18:05:30