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8.It is submitted that the assessment proceeding in case of an “eligible assessee” under Section 144C of the Income Tax Act, 1961 can be completed only after a “Draft Assessment Order” is passed in accordance to Section 144C (1) of the Income Tax Act, 1961 after 01.04.2020.

https://www.mhc.tn.gov.in/judis  W.P.Nos.24357, 24363, 24367, 24374, 24380, 24384, 24386 & 24388 of 2021

16.Relevant portion of the respective verifications in the two mentioned circulars reads as under:

Circular No.5/2010 dated 03.06.2010 Circular No.9/2013 dated 19.11.2013 45.5 Applicability – These amendments 45.6. Applicability: Section 144C has have been made applicable with effect been inserted with effect from 1st April, https://www.mhc.tn.gov.in/judis  W.P.Nos.24357, 24363, 24367, 24374, 24380, 24384, 24386 & 24388 of 2021 Circular No.5/2010 dated 03.06.2010 Circular No.9/2013 dated 19.11.2013 from 1st October 2009, and will 2009. Accordingly, the Assessing Officer accordingly, apply in relation to is required to forward a draft assessment assessment year 2010-11 and order to the eligible assessee, if he subsequent assessment years. The proposes to make, on or after the 1st day of Dispute Resolution Panel Rules have October, 2009, any variation in the income been notified by S.O.No.2958(E), dated or loss returned which is prejudicial to the 20th November, 2009. interest of such assessee. In other words section 144C is applicable to any order which proposes to make variation in income or loss returned by an eligible assessee, on or after 1st October, 2009 irrespective of the assessment year to which it pertains. Amendments to other sections of the Income-tax Act referred to in para 45.3 of the circular 5/2010 dated 3rd June, 2010 shall also apply from 1st October, 2009.

44.This Court in Vijay Television (P) Ltd., vs. Dispute Resolution Panel &Ors, has also referred to the decision of the Allahabad High Court in Commissioner of Income Tax vs. Shital Prasad Kharag Prasad, 280 ITR 541. The Court was influenced by Memorandum explaining the Finance Bill, 2009 which preceded passing of Finance (No.2) Act, 2009, wherein it was stated that Section 144C of the Act would take effect from 01.10.2009 and therefore it was held Circular No.5/10 issued by CBDT stating that Section 144C would apply only from the assessment year 2010-11 and subsequent years and not for the assessment year 2008-09 was held contrary to the express language in Section 144C(1) and the view of the Revenue was found unacceptable.

46.However, the petitioner would have got a further period of 30 days to file the objection after the Draft Assessment Order was passed. The petitioner also had an option to approach the Dispute Resolution Panel in terms of Section 144C(2) of the Income Tax Act, 1961 where the time for completing the assessment could have extended by 10 months.

47.Since, the petitioner became an “eligible assessee” with effect from 01.04.2020 by operation of law in view of the amendment to Section 144C(15)(b)(ii) of the Income Tax Act, 1961, the assessment has to be completed in the manner known to law. The petitioner has to be given 30 days time to given his objection under Section 144C(2) of the Income Tax Act, 1961. The petitioner has to either accept or object to the same, within a period of 30 days from the service of Draft Assessment https://www.mhc.tn.gov.in/judis  W.P.Nos.24357, 24363, 24367, 24374, 24380, 24384, 24386 & 24388 of 2021 Order.