A draft assessment order is required before a prejudicial...

A draft assessment order is required before a prejudicial variation is made to an eligible non-resident individual, preserving the statutory opportunity to seek Dispute Resolution Panel review; the article reports that bypassing this requirement rendered the final assessment jurisdictionally invalid. It further states that best judgment assessment requires actual statutory non-compliance, which was absent where a verified return and supporting responses were furnished. Assessment of an accepted non-resident must be completed by the International Taxation officer, and faceless proceedings did not cure the Gurgaon officer's lack of jurisdiction. Duplicate Form 26AS reporting could not justify an addition where the property deed, bank records and remittance source explained the actual purchase. The reported assessment, demand and penalty notice were quashed without remand.