TMI Blog2020 (2) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Bill proposes to make the issuance of draft assessment orders in the case of eligible assessees mandatory even when there is no variation in the income or loss returned by the assessee but then this amendment seeks to amend the law with effect from 1st April 2020. Explaining this amendment, Memorandum Explaining Amendments in the Finance Bill, 2020 states as Section 144C of the Act provides that in case of certain eligible assessees, viz., foreign companies and any person in whose case transfer pricing adjustments have been made under sub-section (3) of section 92CA of the Act, the Assessing Officer (AO) is required to forward a draft assessment order to the eligible assessee, if he proposes to make any variation in the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arred. Appeal of assessee allowed. - IT Appeal No. 6077 (MUM.) of 2018 - - - Dated:- 25-2-2020 - P.P. Bhatt, President and Pramod Kumar, JJ. For Appellant: P.J. Pardiwala and Madhur Agarwal For Respondents: Avaneesh Tiwari ORDER Pramod Kumar, J. 1. By way of this appeal, the assessee appellant has challenged correctness of DRP's order dated 26-7-2018 in the matter of assessment under section 144C(1) r.w.s. 143(3) of the Income-tax Act, 1961 for the assessment year 2014-15. 2. In the first and grounds of appeal, which we will take up together, the assessee appellant has raised the following grievance: The learned AO has erred in passing a draft assessment order under section 143(3) read with section 144C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, accordingly, brought the income is to tax@ 40% thereof. There is, quite clearly, no variation in the quantum of income. The question whether it was a case in which the Assessing Officer could have issued the draft assessment order, on the facts of this case, needs to be examined in the light of provisions of section 144C(1) which provides that, The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forwards a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... variation may file his objection to the DRP, a collegium of three Principal Commissioners or Commissioners of Income-tax. DRP has nine months to pass directions which are binding on the AO. It is proposed that the provisions of section 144C of the Act may be suitably amended to:-- (A) include cases, where the AO proposes to make any variation which is prejudicial to the interest of the assessee, within the ambit of section 144C; (B) expand the scope of the said section by defining eligible assessee as a non-resident not being a company, or a foreign company. This amendment will take effect from 1st April, 2020. Thus, if the AO proposes to make any variation after this date, in case of eligible assessee, which is prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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