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2023 (3) TMI 345 - AT - Income TaxAssessment u/s 144C - Non passing of draft assessment order - assessment after reference to the TPO on the transfer pricing issue - DRP jurisdiction over a draft assessment order passed subsequent to withdrawal of the final assessment order - HELD THAT:- AO before passing of the final assessment order is mandatorily required to forward a draft of the proposed order of assessment (draft order) to the eligible assessee if he proposes to make any adjustment, and to give opportunity to the assessee to file objections against such draft order either to the Assessing Officer himself or to the DRP. In this case, AO straightway passed the final assessment order, without passing any draft assessment order. As held by the various Benches of the Tribunal a final assessment order without passing of the draft assessment order, being not in accordance with law, is liable to be quashed and further that the subsequent proceedings after passing of the final assessment order would also be vitiated and would not have any sanctity of the law. Coordinate Bench of the Tribunal in the case of "Jazzy Creations Pvt. Ltd." [2016 (1) TMI 1453 - ITAT MUMBAI], wherein, the Tribunal while relying upon the decision of the Hon'ble Madras High Court, in the case of "Vijay Television Pvt. Ltd. Vs DRP" [2014 (6) TMI 540 - MADRAS HIGH COURT] has quashed such an invalid assessment order which was framed without passing of draft assessment order and held that the subsequent corrigendum issued by the AO did not have any legal sanctity. Appeal of the assessee stands allowed.
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