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TMI Blog2021 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have passed an order of draft assessment in terms of Section 144C of the Act and not an order of regular assessment quantifying the final demand and imposing penalty. 2. At paragraph nos. 6 to 8 of the counter filed by the respondent, the Officer concedes to the position that what ought to have been passed in the circumstances is a draft and not final assessment order. The counter states as follows: '6. I submit that in reply to para 8, While assessing the total income of the assessee, the AO made additions on various issues, one of the issue being adjustment on transfer pricing During the course of assessment proceedings in u/s.143(3) of the Act, while uploading the draft order, the assessing officer inadvertently choose assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutorily requires the officer to pass a draft assessment order at the first instance and put the same to the assessee for its acceptance or for filing of objections before the Dispute Resolution Panel. The language of Section 144 C makes this position more than abundantly clear. 5. I draw support in this regard from a decision of this Court in Vijay Television V. Dispute Resolution Panel (369 ITR 113), confirmed by the Division Bench in 407 ITR 642 that reiterates the settled proposition that Section 144C sets forth a mandatory scheme of assessment and it is incumbent upon the Assessing Officer to pass an order of draft assessment at the first instance before proceeding to finalise the assessment in line with the procedure set out unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 144C, which he is statutorily mandated to follow and apply. 7. In Principal Commissioner of Income Tax V. Headstrong Services India Private Limited (I.T.A.No.77 of 2019 dated 24.12.2020), the challenge was to an assessment made on remand from an appellate authority and the issue that arose was whether the assessing authority would have to pass a draft order of assessment or a final order of assessment. The phrase 'in the first instance' in Section 144C was interpreted by the Division Bench to the effect that, be an original order of assessment or an assessment made on remand, the mandate of Section 144C must be followed. 8. A draft order of assessment would normally indicate, in conclusion, that the assessee has the option of either ..... X X X X Extracts X X X X X X X X Extracts X X X X
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