https://www.taxtmi.com/caselaws?id=447289 The ITAT Mumbai held that a draft assessment order became invalid when the AO issued it alongside a demand notice u/s 156 and penalty notice u/s 274 r.w.s. 271(1)(c), effectively treating it as a final order rather than a draft. Following the precedent in Cisco Systems Services B.V., the tribunal ruled that demand notices create enforceable civil consequences, making the draft order final in nature. Since the error was not curable under s. 292B, both the draft and subsequent final assessment orders were quashed. The tribunal also determined the total income should reflect returned income plus amounts agreed in MAP proceedings. en-us Tue, 19 Dec 2023 00:00:00 +0530 Mon, 20 Apr 2026 10:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447289 The ITAT Mumbai held that a draft assessment order became invalid when the AO issued it alongside a demand notice u/s 156 and penalty notice u/s 274 r.w.s. 271(1)(c), effectively treating it as a final order rather than a draft. Following the precedent in Cisco Systems Services B.V., the tribunal ruled that demand notices create enforceable civil consequences, making the draft order final in nature. Since the error was not curable under s. 292B, both the draft and subsequent final assessment orders were quashed. The tribunal also determined the total income should reflect returned income plus amounts agreed in MAP proceedings. Case-Laws Income Tax Tue, 19 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447289