2017 (5) TMI 991 - DELHI HIGH COURT

Validity of assessment - Non-compliance with the mandatory provision contained in Section 144C(1) requiring the AO to first frame draft assessment orders - Held that:- The failure by the AO to adhere to the mandatory requirement of Section 144C (1) of the Act and first pass a draft assessment order would result in invalidation of the final assessment order and the consequent demand notices and penalty proceedings.

For the aforementioned reasons, the final assessment orders dated 31st March, 2015 passed by the AO for AYs 2007-08 and 2008-09, the consequential demand notices issued by the AO and the initiation of penalty proceedings are hereby set aside. - Decided in favour of assessee.