Applicability of provision of section 144C - breach to pass...

Applicability of provision of section 144C - breach to pass draft assessment order before issuing the final order - The interpretation of the Revenue inasmuch as the phrase ‘at the first instance’, is wholly misconceived. The mandatory requirement of passing draft order has to be strictly adhered to, irrespective of the remand order passed by the Tribunal. Having regard to the language employed by the legislature under Section 144C of the Act, it is mandatory to the Assessing Officer to pass draft assessment order before issuing the final order, breach of the same would result in violation of the principles of natural justice making the order itself void ab-initio. - HC