TaxTMI 
TaxTMI 
2026 (9) TMI 1063
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....ainst the consolidated appellate order passed by the Learned Commissioner of Income Tax (Appeals)-XXVII, New Delhi on 09.04.2015, arising from the Assessment Order u/s 142(1)/144 of the Income Tax Act, 1961 (hereinafter referred as 'the Act') dated 28.03.2014 passed by the DCIT, Central Circle-10, New Delhi for the A.Y 2012-13. 2. Revenue filed the following grounds of appeal as under: 1. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in holding that assessee company is not resident in terms of provisions under section 6(3)(ii) of the I.T. Act for the purpose of tax liability whereas on the basis of seized documents/e-mails and various statements of Sh. Ajay Kalsi/Sh. Anil Aggarwal, it has been....
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....in his cross objection appeal which reads as under : "1) On the facts and circumstances of the case and in law, the impugned assessment order passed by the assessing officer is liable to be quashed as it is contrary to provisions of 144C of the Act. 2) On the facts and circumstances of the case and in law, the assessing officer erred in passing the final assessment order without a passing draft assessment order in terms of provisions of section 144C of the Act. 3) On the facts and circumstances of the case and in law, the assessment order passed by Assessing Officer lacked the jurisdiction in terms of the provisions of section 124 to 127 of the IT Act. 4) On the facts and circumstances of the case and in ....
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....,140/- on protective basis vide order u/s 144 of the Act dated 23.03.2014. Being aggrieved, assessee was in appeal before the ld. CIT(A). The ld. CIT(A) gave relief to the assessee. 5. Aggrieved, Revenue is now in appeal before us. 6. At the outset, the ld. AR submitted that the ITAT's order dated 10.01.2024 in its own case for ITA Nos. 4650 to 4653/Del/2015 for A.Ys 2008-09 to 2011-12 wherein passing of final assessment order without passing a draft assessment order was held as not sustainable in the eyes of law and the appeal was allowed. The concluding part of the order reproduced herein below: "Thus, on going through the provisions of Section 144C(1) of the Income Tax Act, 1961 mandating forwarding of a draft Assessment O....
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....C of the Act. Further we note that the AO passed the order without passing a draft order u/s 144C(1) of the Act. The substantive issue therefore, before us for adjudication is the validity of the Final Assessment order passed by the AO without framing a draft assessment order u/s 144C(1). In such facts, we find it appropriate to reproduce the provisions of law on the subject u/s 144C during the relevant period, as under: Reference to dispute resolution panel. 144C. (1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he ....
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.... u/s 144C(13) of the Act. 11. The mandatory and statutory requirement of issuance of draft order and thereafter, the final order, is no longer res-integra. The. Bombay High Court in the case of SHL India (P.) Ltd v. Dy. CIT [2021] 128 taxmann.com 426 (Bom.) held that the failure to follow the procedure under section 144C(1) would be a jurisdictional error which is in a breach of a mandatory provision and not merely procedural error or a mere irregularity which can be cured u/s 292B of the IT Act. 12. The hon'ble Delhi High Court in the case of CIT-International Taxation-2 Vs. Rolland Enterprises Ltd. in ITA 556/2024 & CM No. 66848/2024 has also held that the assessee, being an eligible assessee, the AO has to follow the procedure pres....