MANUEL JOY,WESTERN AUSTRALIA V. ASSISTANT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) , COCHIN

ITITA 17/COCH/2025

AI Insights

The case involves Manual Joy, a non-resident individual, who appealed against the final assessment order passed by the AO for the Assessment Year 2018-19. Initially, Joy filed a return disclosing an income of Rs. 2,14,08,120, which was later assessed at Rs. 7,43,65,700 following objections and directions from the Dispute Resolution Panel (DRP). The Tribunal had previously remanded the matter back to the AO, leading to a consequential order which Joy again contested, resulting in the current appeal. The core legal issue revolved around the procedural requirement of issuing a draft assessment order under section 144C of the Act during remand proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717202 (ITAT-COCHIN)
• Duration Of Justice: 23 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 21-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 29-07-2025
• Other Referred Cases: JBC India Ltd. v. DCIT [2017] 85 taxmann.com 155/251 Taxman 143 (Delhi), PCIT v. Andrew Telecommunications P. Ltd. [2018] 96 taxmann.com 613 (Bom.), Wipro Ge Healthcare (P.) Ltd. v. DCIT [2020] 118 taxmann.com 302/275 Taxman 163 (Kar.), Durr India (P.) Ltd. v. ACIT [2021] 130 taxmann.com 491 (Mad.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJIT KUMAR DAS
• Assessee Lawyers: RAVISH KUMAR K.
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI RAHUL CHAUDHARY, JM IT(IT)A No. 17/Coch/2025 Assessment Year: 2018-19 Manual Joy .......... Appellant 15, Central Road,Rose Moyne, Australia [PAN: AYNPJ2440G] vs. ACIT (International Taxation), Kochi ......... Respondent Assessee by: Shri Ravish Kumar K., CA Revenue by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 20.08.2025 Date of Pronouncement: 21.08.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the final assessment order of the DCIT dated 11.04.2022 for Assessment Year (AY) 2018-19. 2. Brief facts of the case are that the appellant is a non-resident individual. The appellant filed the return of income for AY 2018-19 on 28.08.2018 disclosing total income of Rs. 2,14,08,120/-. Against the said return of income, draft assessment order was passed by the AO u/s. 144C(1) of the Income Tax Act, 1961 (the Act) on 20.09.2021. On receipt of the draft assessment order the appellant filed objections Printed from counselvise.com 2 IT(IT)A No. 17/Coch/2025 Manual Joy before the Dispute Resolution Panel (DRP). The DRP issued directions on 22-03-2022. On receipt of the directions of the DRP, final assessment order was passed by the AO u/s. 143(3) r.w.s. 144C(13) of the Act on 11.04.2022 at a total income of Rs. 7,43,65,700/- 3. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 4. The Tribunal in IT(IT)A No. 7/Coch/2023dated 23.08.2024 remanded the matter to the file of the AO. 5. Pursuant to the order of remand made by this Tribunal the AO had passed consequential order dated 27.05.2025. 6. Being aggrieved by the consequential order the appellant is in appeal before this Tribunal in the present appeal. 7. We have heard the rival contentions and perused the material available on record. At the outset, we find that the AO, while passing the consequential order, had not passed draft assessment order as envisaged under the provisions of section 144C of the Act. It is settled position of law that even in the case of remand proceedings, the AO cannot straight away pass final assessment order without issuing draft assessment order u/s. 144C(1) of the Act as held by the following judgements: - i. JBC India Ltd. v. DCIT [2017] 85 taxmann.com 155/251 Taxman 143 (Delhi) Printed from counselvise.com 3 IT(IT)A No. 17/Coch/2025 Manual Joy ii. PCIT v. Andrew Telecommunications P. Ltd. [2018] 96 taxmann.com 613 (Bom.) iii. Wipro Ge Healthcare (P.) Ltd. v. DCIT [2020] 118 taxmann.com [2020] 118 taxmamm.com 302/275 Taxman 163 (Kar.) iv. Durr India (P.) Ltd. v. ACIT [2021] 130 taxmann.com 491 (Mad.) In the light of the above judgements, we relegate the proceedings to the stage of issue of draft assessment order and direct the AO to follow the procedures laid down u/s. 144C of the Act. 8. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 21st August, 2025. Sd/- Sd/- (RAHUL CHAUDHARY) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st August, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin Printed from counselvise.com "