Maruti Suzuki Gets 2160 Cr Income Tax Assessment Order: Maruti Suzuki India Ltd on October 3 informed the stock exchanges that it has received a draft Income Tax assessment order for pending dues amounting to Rs.2,160 crore from the Income Tax department. The case pertains to the period of financial year 2019-20.
In response to the order, the Maruti Suzuki said it will file its objections before the Dispute Resolution Panel.
“The company has received draft assessment order for the FY 2019-20 wherein certain additions/disallowances amounting to Rs.21,59.70 crores with respect to its returned income (the income disclosed by the Company in its Income Tax return) for that fiscal year.
Maruti Suzuki India Ltd saw its consolidated net profit surge over two-fold to Rs.2,525 crore for the first quarter ended on June 30, 2023. The auto major had reported a net profit of Rs.1,036 crore in the same period of 2022-23.
Total revenue of Maruti Suzuki from operations increased to Rs.32,338 crore in the April-June quarter from Rs.26,512 crore in the year-ago period.
The order will have “no impact on financial, operation or other activities of the company”, the company said.
Procedure for draft assessment order:
As per Section 144C, when the assessing officer completes the assessment proceedings, he shall pass a draft assessment order, which shall include the total income or loss, the amount of tax payable or refundable, and other relevant details. The draft assessment order shall be passed after giving the assessee an opportunity of being heard and after taking into consideration all the relevant material.
Role of Dispute resolution panel:
Once the draft assessment order is passed, it is then forwarded to the Dispute Resolution Panel (DRP) by the assessing officer. The DRP is an independent body comprising three commissioners who are appointed by the Central Board of Direct Taxes. The DRP’s primary function is to provide an independent and impartial review of the draft assessment order passed by the assessing officer.
The opportunity of being heard:
The DRP shall issue a notice to the assessee and provide an opportunity of being heard. The assessee can file objections to the draft assessment order within thirty days from the date of receipt of the notice. The DRP shall consider the objections and pass necessary orders.
The time limit for passing the order:
The DRP shall pass an order within nine months from the end of the month in which the draft assessment order was forwarded to it by the assessing officer. The order passed by the DRP shall be binding on the assessing officer.
Scope of Appeal against the order:
If the assessee is aggrieved by the order passed by the DRP, he can file an appeal before the Income Tax Appellate Tribunal (ITAT) within sixty days from the date of receipt of the order.
Follow the Link of I-T department to know more about a draft assessment order:https://incometaxindia.gov.in/Acts/Finance%20Acts/2009/102120000000010224.htm
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