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2023 (2) TMI 1294 - ITAT MUMBAIValidity of assessment order u/s 144C (1) without passing the draft assessment order - HELD THAT:- The Hon’ble Bombay High Court in the case of Exxon Mobil Company (P.) Ltd. [2022 (4) TMI 1556 - BOMBAY HIGH COURT] in a recent decision reiterated the legal requirement of passing draft assessment order in proceeding u/s 144C of the Act arising out of remand from the Tribunal. The Hon’ble High Court held that where Tribunal remanded the matter to give effect to transfer pricing issue, assessee’s case would be eligible u/s 144C of the Act and the AO was required to pass draft assessment order before issuance of final assessment order. Similar view was taken in the case of Turner International India (P.) Ltd. [2017 (5) TMI 991 - DELHI HIGH COURT] held that failure of AO to adhere to mandatory requirement of section 144C (1) of the Act, where the final assessment order has been passed without draft assessment order, such final assessment order shall be invalid. AO was required to adjudicate the issue of amount received under International Sales and Marketing Agreement afresh in line with the directions of the Tribunal. It was incumbent upon the AO to follow the procedure laid down u/s 144C of the Act, i.e. to first pass the draft assessment order. In the facts of the case and the decisions referred above, we hold that assessment order passed by AO without passing draft assessment order is invalid and unsustainable, ergo, the same is liable to be quashed. We hold and direct accordingly.
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