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2021 (4) TMI 120 - ITAT BANGALOREOrder passed by the AO u/s 143 (3) read with section 144C (1) titling it as “Draft Assessment Order” - AO while passing the impugned order, issued the demand notice under section 156 of the Act in Form 7, along with penalty notice u/s 274 read with section 271 of the Act on the even date - HELD THAT:- As per section 144C of the Act, it is mandatory for the Ld.AO to pass Draft Assessment Order in accordance with the procedure laid down therein. Various decisions relied by the Ld.AR reproduced hereinabove highlight that, it is mandatory for Ld.AO to follow the procedures laid down under section 144C in an assessment that involves assessment of international transaction. AO passed order under section 143(3) read with section 144C(1) of the Act dated 25/02/2015 and along with demand notice issued u/s 156 and penalty notice under section 274 read with section 271 of the Act. Ratio of Hon’ble Madras High Court in VIJAY TELEVISION (P.) LTD. VERSUS DISPUTE RESOLUTION PANEL, CHENNAI [2014 (6) TMI 540 - MADRAS HIGH COURT] has expressed the view that such orders passed by the Ld.AO without following due process of law are liable to be set aside. We place reliance on the decision of Kaneel Oils & Export Inds. Ltd. Vs. JCIT [2009 (8) TMI 806 - ITAT AHMEDABAD-C] which is a Third Member decision. As the assessment order passed dated 25/2/2015 has been quashed and set aside.
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