Assessment Order Deemed Void for Non-compliance with Sec. 144C

The Tribunal dismissed the Revenue's appeal and allowed the Cross Objection of the assessee as the assessment order was deemed null and void due to non-compliance with Sec. 144C and the absence of the draft assessment order for Assessment Year 2006-07. This decision was based on the Tribunal's finding that the assessment order issued without the draft order and in violation of mandatory provisions was invalid. Other issues raised were not addressed as the primary ground concerning the assessment order's validity determined the case outcome.

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Issues Involved: Appeal against the assessment order for Assessment Year 2006-07 due to non-availability of draft assessment order and failure to follow the procedure under Sec. 144C of the Income Tax Act, 1961.

Analysis:

1. Additional Ground Raised by the Assessee:
- The assessee raised an additional ground stating that the Assessing Officer erred by not forwarding a draft of the proposed assessment order, violating the procedure under Sec. 144C of the Income Tax Act, 1961.
- The additional ground was contested by the Departmental Representative, arguing against its admission.
- The Tribunal admitted the additional ground, considering its significance in the assessment process, following the decision of the Hon'ble Supreme Court in a relevant case.

2. Submission of Affidavit by the Assessee:
- The assessee submitted an affidavit supporting the additional ground, claiming that no draft assessment order for the relevant year was received.
- The Departmental Representative confirmed the non-availability of the draft order in the assessment records.
- The Authorized Representative of the assessee cited a precedent from the Hon'ble Andhra Pradesh High Court to support the argument that the assessment order should be quashed due to the absence of the draft assessment order.

3. Decision of the Tribunal:
- The Tribunal noted the absence of the draft assessment order and the failure to produce it during the proceedings.
- Citing the decision of the Hon'ble Andhra Pradesh High Court, the Tribunal held that the assessment order passed without the draft order and in violation of mandatory provisions is null and void.
- Consequently, the Tribunal allowed the additional ground filed by the assessee, leading to the dismissal of the Revenue's appeal and the allowance of the Cross Objection of the assessee.

4. Final Outcome:
- The Tribunal dismissed the appeal of the Revenue and allowed the Cross Objection of the assessee, based on the non-compliance with the procedure under Sec. 144C and the absence of the draft assessment order, rendering the assessment order null and void.
- Other issues raised in the appeal and Cross Objection were not addressed due to the primary ground concerning the assessment order's validity.

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