AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (3) TMI 908
X X X X Extracts X X X X
X X X X Extracts X X X X
....or short), pertaining to the Assessment Year ('A.Y.' for short) 2017-18. 2. The assessee has challenged the assessment order on various grounds - both non corporate tax and on corporate tax grounds. 3. The brief facts are that the assessee company is part of the UTC group and is engaged in the business of import and resale of various fire protection and security systems (trading activity) and assisting its group companies in sale of these systems in India in manufacturing, erection, installment and maintenance of fire protection and security system as per various government and semi government turnkey projects and rendering research and development services to its group companies in relation to fire protection and security business. The a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is passed u/s. 144C of the Act, which is contrary to the provision of section 144B of the Act. The assessee has also challenged the transfer pricing grounds and corporate tax grounds. As the above legal ground goes to the root of the present appeal, we hereby proceed to decide this legal ground before getting into the merits of the case. 6. It is observed that the assessment was conducted as per the Faceless Assessment Scheme and the assessee submits that the A.O. has to examine the draft assessment order prepared by the assessment unit and by giving an opportunity to the assessee in case of any variation proposed by serving a notices to the assessee to show cause as to why the proposed variation should not be made. The assessee relied on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....en an opportunity to be heard before the A.O. at the draft stage itself, if the assessee chooses to file objection before the DRP. The ld. DRP further held that the decisions relied upon by the assessee are related to cases in which section 144C was not applicable or to cases where at the assessment stage, the assessee was not given an opportunity of being heard. In this observation, the ld. DRP rejected the objection of the assessee and subsequently the A.O. passed the impugned assessment order. 7. The assessee has challenged the action of the lower authorities before us. The ld. AR for the assessee contended that the A.O. has failed to issue show cause notice-cum-draft order which is mandated in section 144B of the Act which come into pl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Notification No. 6 & 7 of 2021 whereby the A.O. has to examine the draft assessment order prepared by the assessment unit by giving the assessee an opportunity to be heard where any variation prejudicial to the interest of the assessee is proposed. The A.O. has to issue notice to show cause to the assessee as to the proposed variation. The assessee contends that for the impugned year, the addition aggregating to Rs.44,10,97,476/- was proposed to be made in the draft assessment order, thereby contending that the same was prejudicial to the interest of the assessee for which the A.O. should have issued a draft order proposing the impugned addition. The assessee further contended that the A.O. has issued draft assessment order without issuin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed on the request referred to in clause (vi) to the concerned assessment unit; 10. This provision mandates that in case of variation proposed in the transfer assessment order, a show cause notice is to be issued as to provide with an opportunity to the assessee for the reason that the assessee can request for personal hearing to make oral submissions or to present his case on the proposed variation, also provides for virtual hearing through video conferencing, video-telephone for the purpose of presenting the assessee's case. We would like to place our reliance on the decision of the Hon'ble Jurisdictional High Court in the case of Piramal Enterprises Ltd. (Supra), wherein it has stated that in assessment order passed u/s. 143(3) r.w.....