[
Hearing concluded on : 18.03.2026
Judgment on : 19.03.2026
2026:CHC-OS:95
Kausik Chanda, J.:-
The present writ petition under Article 226 of the Constitution of
India raises an issue concerning the statutory scheme under Section
144C of the Income Tax Act,1961, relating to the Dispute Resolution
Panel. The petitioner challenges the action of the Income Tax Authorities
in seeking to enforce a demand purportedly arising from a notice of
demand dated March 16, 2021 issued under Section 156 of the Act. The
said demand was issued along with a draft assessment order under
Section 144C(1) for the assessment year 2017-18. The grievance of the
petitioner is that although a draft order was issued and objections were
duly filed before the Dispute Resolution Panel, no final assessment order
was ever passed within the statutory time limit prescribed under Section
144C(13). In such circumstances, it is contended that no enforceable
demand exists in law and the attempt of the authorities to recover the
alleged tax liability is wholly without jurisdiction.
