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| The Tax Publishers2020 TaxPub(DT) 4475 (Pune-Trib) INCOME TAX ACT, 1961
Section 144C(1)
Since admittedly no draft order was in second round of proceedings in instant case, wherein AO directly proceeded to pass final assessment order, assessment order was declared as invalid. Non-passing of draft order deprived assessee from approaching forum of DRP for redressal of its grievances.
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Assessment - Validity - AO did not pass draft orders in second round of remand proceedings and directly passed final assessment order -
Revenue made additions on account of receipt of license fee for CAD/CAM software and on account of receipt of services. Assessee contended that AO in second round of extant proceedings flowing from order of Tribunal, wherein issue was restored for a fresh determination, ought to have first passed the draft order before the final order, which AO failed to do so. Assessee challenged validity of final assessment order passed in remand proceedings without following statutorily mandated procedure requiring passing of draft order as well. Held: Since admittedly no draft order was in second round of proceedings in instant case, wherein AO directly proceeded to pass final assessment order, assessment order was declared as invalid. Non-passing of draft order deprived assessee from approaching forum of DRP for redressal of its grievances.
Followed:Pr. CIT v. Lionbridge Technologies Pvt. Ltd. (2019) 260 Taxman 273 (Bom-HC) : 2018 TaxPub(DT) 7995 (Bom-HC), Control Risks India Pvt. Ltd. v. Dy.CIT (2014) 408 ITR 23 (Bom-St.) : 2018 TaxPub(DT) 4391 (Del-HC), Turner International India Pvt. Ltd. v. Dy.CIT (2017) 398 ITR 177 (Del-HC) : 2017 TaxPub(DT) 1685 (Del-HC), AB Sandvik Coromant v. Dy.CIT [ITA No. 1718/PN/2011, ITA No. 270/PN/2013, dt. 16-5-2016] and Sandvik Australia Pty. Ltd. v. Dy.CIT (International Taxation)-II 2013 TaxPub(DT) 1105 (Pune-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
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