INCOME TAX ACT, 1961

Section 144C

Assessment - Disputes Resolution Panel - -

AO issued draft assessment order under section 143(3) read with section 144C. Being aggrieved by and/or dissatisfied withs aid draft assessment order assessee based at Mauritius preferred objection along with From No. 35A before 'DRP' in respect of the variations proposed by AO. During the course of proceedings before DRP, it was observed by Panel Members that Form No. 35A filed by assessee was not verified as per the procedure laid down since signature of person on verification page in said form was a copy of original signature. On that premise panel proceeded to consider the maintainability of the said objection filed by the assessee under Form No. 35A. Assessee submitted that at that relevant point of time since Mauritius was hit by a cyclone leading to heavy rainfall and causing devastating damage in the country. Directors present in Mauritius were not avalable for signing and forwarding the original objections. To meet the deadline, therefore, assessee got the original objections signed by one of its Director available at USA and filed scanned copy. Case of assessee was that there was no difference between scanned copy and the original and assessee urged on curability of the lapse /irregularity, if any, and requested to conider original one. However, such plea of assessee was not found acceptable by DRP and same was rejected in limine. Held: In the order passed by DRP, there was no observation as regards reason explained by assessee for filing Form No. 35A with scanned signature. Rather, when concerned Director was not available at Mauritius, assessee with bona fide intention not the said form signed by other Direcotr of company available at USA and filed scanned document thereon in due date. Even it it was a defect in the eyes of law, it was procedural defect and curable in nature, since procedures are handmade of justice. As such furnishing of scanned papers and replacing them with hard copies or soft copies, if any, was now not new to the department and in that view of the matter, there was no merit in rejecting From 35A in limine and DRP was directed to accept original Form No. 35A submitted by assessee and to proceed with matter upon giving an opportunity of hearing to assessee.

Relied:MSM Satellite (Singapore) Pted. Ltd. v. Jt.CIT (2016) 75 Taxmann.com 216 (Mum) : 2016 TaxPub(DT) 4845 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

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