TaxTMI 
TaxTMI 
Evaluating Jurisdictional Validity in Taxation: The Significance of Draft Assessment Orders under Section 144C
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the interpretation and application of Section 144C of the Income Tax Act, 1961, in the context of a foreign entity's income tax assessment in India. The case involves an intricate assessment of procedural adherence, jurisdictional authority, and statutory interpretation concerning the issuance of a draft assessment order under Section 144C. Background The central issue revolves around an order....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Principal Commissioners or Commissioners of Income Tax constituted by the Central Board of Direct Taxes​​. Applicability to Foreign Entities The petitioner, a foreign entity, qualified as an 'eligible assessee' under Section 144C(15)(b). Therefore, the issuance of a draft assessment order was a statutory requirement that could not be bypassed​​. Interpretation of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the final assessment order and subsequent proceedings. The court noted that this omission was not merely a procedural oversight but a substantive lapse, rendering the impugned order and subsequent notices void of jurisdiction​​. Impact on the Assessee's Rights By not issuing a draft assessment order, the assessee was denied the opportunity to object before the Dispute Resolut....