2026 (4) TMI 101

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..... 2. The assessee has raised following grounds of appeal :- a) On the facts and circumstances of the case and in law, the Id. CIT(A) has erred in holding that interest should be charged during the moratorium period on loan given by the appellant to Associated Enterprise. b) On the facts and circumstances of the case and in law, the Id. CIT(A) has erred in holding that interest should be charged during the moratorium period even after accepting the effective rate of interest which was determined after considering nil rate of interest in moratorium period & LIBOR + 300 bps in subsequent period. 3. The Ld. Counsel for the assessee submitted that the assessee has filed additional grounds of appeal contending that the fin....

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....nal ground the Ld. Counsel for the assessee submitted that the AO never passed a draft assessment order enabling the assessee to file objections before the DRP/ CIT(A). The Ld. Counsel for the assessee submitted that the AO without passing draft assessment order passed final assessment order on 27.03.2015 even though a reference was made by the AO to the TPO for benchmarking the international transactions and the TPO framed order u/s. 92CA (3) of the Act on 07.01.2015 which was communicated to the AO on 16.01.2015. The Ld. Counsel for the assessee submits that the AO without passing a draft assessment order has passed final assessment order on 27.03.2015 and such final assessment order is bad in law and void ab initio. The Ld. Counsel for t....

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....s valid in the eyes of law came up before consideration of various High Courts and the Hon'ble Delhi High Court in the case of Turner International India Pvt. Ltd. Vs. DCIT (supra) held that failure of AO to adhere to mandatory requirement under section 144C(1) of the Act and first not passing draft assessment order would result in invalidation of final assessment order and consequent demand notices and penalty proceedings. Similar view has been taken by the Delhi High Court in the case of DCIT Vs. Control Risks India Pvt. Ltd. (107 taxmann.com 82) and SLP filed by the revenue in DCIT Vs. Control Risks India Pvt. Ltd. was dismissed by the Hon'ble Supreme Court which is reported in 264 taxmnan.com 291. 11. Thus, respectfully following the....