TaxTMI 
TaxTMI 
2025 (10) TMI 911
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 28th February 2025 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (for short "IT Act"), as well as the impugned notices dated 28th February 2025 issued under Sections 156 and 274 read with Section 271AA(1) and Section 270A of the IT Act. The Assessment Year in question is 2022-2023. 3. The short grievance in the above Petition is that in the facts of the present case, the Petitioner is an "eligible assessee" as contemplated under Section 144C(15)(b)(i) and therefore, before any final assessment order could have been passed which was prejudicial to the interest of the assessee, the Assessing Officer ought to have passed a draft assessment order and served it on the Petitioner so as to enable it to file it....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ft assessment order on the Petitioner to enable it to approach the DRP. This is in clear violation not only of the provisions of Section 144C but also of Section 144B(1)(xxi) to (xxix) thereof. Once this is the case, the final assessment order in the above Petition cannot stand and would have to be set aside. 7. In the view that we take, we are supported by the decision of this Court in the case of Danfoss Fluid Power Private Limited Vs. Union of India and Ors. (Writ Petition No. 10403 of 2025 decided on 29th September 2025). In the facts of Danfoss (supra), a final assessment order was passed without serving the draft assessment order on the Petitioner. This Court held that the same would clearly be in contravention of the provisions se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion Panel (DRP), as contemplated under Section 144C(2), or choose to go by the normal route, i.e. to ask the Assessing Officer to pass a final assessment order and thereafter challenge the same before the CIT [Appeals]. By directly passing a final assessment order without serving a draft assessment order on the Petitioner clearly flies in the teeth of Section 144C. Once this is the case, we find that the assessment order dated 28th March 2025 cannot be allowed to stand and has to be quashed and set aside. 5. In the view that we take, we are supported by a decision of a Division Bench of this court in the case of SHL (INDIA) PVT. LTD. V. DEPUTY COMMISSIONER OF INCOME-TAX AND OTHERS, [2021] 438 ITR 317 (Bom). The relevant portion of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce in such a case. The Legislature, in our view, has intended to give an important opportunity to the Petitioner, who is an eligible assessee, which in our view, has been taken away. In our view, failure to follow the procedure under Section 144C(1) would be a jurisdictional error and not merely procedural error or a mere irregularity. The Assessment Order has not been passed in accordance with the provisions of Section 144C of the Income-tax Act. This is not an issue, which involves a mistake in the said order, but it involves the power of the Assessing Officer to pass the order. By not following the procedure laid down in Section 144C(1) to pass and furnish a draft Assessment Order to the Petitioner and directly passing a final ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpugned assessment order, demand notice and penalty notice, all dated April 6, 2021 for the assessment year 2017-18. The Writ Petition is allowed in the above terms. However, there shall be no order as to costs." 6. In view of the foregoing discussion, the impugned assessment order dated 28th March 2025 is hereby quashed and set aside." 8. As far as the prayer for remand is concerned, we see no reason to remand the matter back to the Assessing Officer. If the Assessing Officer, in law, is entitled to initiate this process again by passing a fresh draft assessment order and serving it upon the Petitioner, they are free to do so if they are entitled to do in law. We have not opined on this aspect of the matter one way or ....