Draft order mandatory for Transfer Pricing adjustments & variations in non-resident cases.

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Full Text of the Document

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....The Tribunal held that the Assessing Officer is required to issue a draft assessment order u/s 144C in cases where there is a variation to the returned income on account of arm's length price adjustments for international or specified domestic transactions, as proposed by the Transfer Pricing Officer. Additionally, for non-resident assessees (other than companies), the Assessing Officer must comply with Section 144C from April 1, 2020, if any variation prejudicial to the assessee's interest is proposed. The Tribunal quashed the final assessment order passed without issuing a draft order as mandated by Section 144C(1), following the Delhi High Court's decision in Principal Commissioner of Income Tax vs Sumitomo Corporation India (P.) Ltd.....