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2023 (1) TMI 1370 - ITAT MUMBAIValidity of assessment passed u/s 143(3) r.w.s. 144C as barred by limitation - need for issuance of draft order u/s 144C(1) - According to CIT(A), since there was no variation in the returned income by the assessee/foreign non-resident company (eligible assessee), the AO ought not to have passed the draft assessment order and should have straight away proceeded to pass the assessment order - HELD THAT:- We note that though the assessee herein is an eligible assessee u/s 144C(1) of the Act, however the condition required to be satisfied for issuance of draft order u/s 144C(1) of the Act has not been satisfied because there was no variation of returned income which is prejudicial to the interest of the assessee. Therefore, we find that the aforesaid condition prescribed u/s 144C(1) of the Act was not satisfied. Therefore, the AO ought to have passed the assessment order u/s 143(3) of the Act within the limitation time prescribed u/s 153(1) of the Act i.e. within the twenty one (21) months from the end of the assessment year i.e. on or before 31st December, 2016. And since the assessment order was framed on 7th Feb, 2017, the action of the AO is barred by limitation. No infirmity in the impugned order of the Ld. CIT(A). Therefore, we confirm the action of the Ld. CIT(A) and decline to interfere with the order of the CIT(A). Hence the appeal of the revenue is dismissed.
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