Assessee's Failure To Respond To Draft Assessment Order In Timely Manner No Grounds For AO To Exceed Limitation U/S 144C(4) Of IT Act: Delhi HC

The Delhi High Court held that an assessee’s failure to timely respond to a draft assessment order does not allow the Assessing Officer (AO) to exceed the limitation period for passing the final assessment order under Section 144C(4) of the Income Tax Act. The case involved a draft assessment order issued on March 4, 2022, with the assessee required to respond within 30 days. The assessee filed objections late, and the final assessment order was passed beyond the prescribed period. The court ruled that the AO must adhere to the statutory timeline, regardless of the assessee’s delay. The court dismissed the Revenue’s appeal, emphasizing that the AO was required to pass the final order within the stipulated period, ensuring adherence to procedural timelines.