The Tax Publishers2020 TaxPub(DT) 2373 (Del-Trib)

INCOME TAX ACT, 1961

Section 144C

Final assessment order under section 144C passed without issuing draft assessment order was void ab initio.

Assessment - Transfer pricing - Issuance of notice of demand and penalty notice along with so called draft assessment order -

Assessee entered into international transaction with AEs. AO framed assessment under section 144C. Assessee challenged this on the ground of issuance of notices under sections 156 and 274 read with section 271(1)(c) along with Order captioned as draft assessment order. Held: As per section 144C, it was mandatory for AO to pass draft assessment order. But instead of that, AO merely captioned the final Assessment Order as Draft Assessment Order along with issuance of notices under sections 156 and 274 read with section 271(1)(c). Accordingly, it was clear that final Assessment Order under section 144C was passed without following mandatory provisions of section 144C without issuing a draft assessment order and therefore, assessment order was void ab initio.

Relied:Nokia India (P) Ltd. v. Addl. CIT [WP(C) No. 3629 of 2017 (Delhi)] : 2018 TaxPub(DT) 4677 (Del-HC), Control Risks India (P) Ltd. v. Dy. CIT 2018 TaxPub(DT) 4391 (Del-HC) and Turner International India (P) Ltd. v. Dy. CIT (2017) 398 ITR 177 (Del) : 2017 TaxPub(DT) 1685 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2015-16

IN THE ITAT, DELHI BENCH

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