https://www.taxtmi.com/caselaws?id=775245 The Kerala HC held that the procedure under Section 144C(1) of the Income Tax Act is mandatory, requiring the assessing officer to send a draft of the proposed assessment order to the assessee when there is a variation prejudicial to their interest. The court found that the AO's failure to follow this procedure was a fatal error, despite the Revenue's reliance on Circular No.5/2010. The court declared that the Board's circular interpretation was contrary to statutory provisions and therefore incorrect and illegal, noting that even the Board cannot violate Act provisions. The court rejected the Revenue's argument for remand, citing that the limitation period under Section 153 had expired, making fresh assessment impermissible per Supreme Court precedent. The writ petition was allowed. en-us Tue, 15 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775245 The Kerala HC held that the procedure under Section 144C(1) of the Income Tax Act is mandatory, requiring the assessing officer to send a draft of the proposed assessment order to the assessee when there is a variation prejudicial to their interest. The court found that the AO's failure to follow this procedure was a fatal error, despite the Revenue's reliance on Circular No.5/2010. The court declared that the Board's circular interpretation was contrary to statutory provisions and therefore incorrect and illegal, noting that even the Board cannot violate Act provisions. The court rejected the Revenue's argument for remand, citing that the limitation period under Section 153 had expired, making fresh assessment impermissible per Supreme Court precedent. The writ petition was allowed. Case-Laws Income Tax Tue, 15 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775245