The Tax Publishers2020 TaxPub(DT) 4042 (Del-Trib)

INCOME TAX ACT, 1961

Section 144C

Where AO along with passing of draft assessment order, quantified taxable income and determined tax payable by issuing and serving demand notice under section 156, this action of AO brought the proceedings to an end and proceedings initiated under section 144C stood concluded making all subsequent proceedings and final assessment orders as non est.

Assessment - Transfer pricing - Issuance of demand and penalty notice along with so-called draft assessment order -

Assessee-company entered into international transactions with its AE. TPO proposed TP adjustment to income of assessee. On the basis of proposed adjustment, AO framed an Order dated 21-2-2018, which was captioned as 'Draft Assessment Order' but same was accompanied by notice of demand under section 156 also initiated penalty proceedings. Assessee challenged validity of order framed under section 143(3) read with section 144C. Held: Section 144C triggers a series of steps prescribed in sub-section (2) to sub-section (12) and as can be seen from the most relevant sub-sections (3) and (13) assessment is complete either under sub-section (3) or sub-section (13). Facts on record showed that AO quantified taxable income and determined tax payable by issuing and serving demand notice under section 156. This action of AO brought the proceedings to an end and proceedings initiated under section 144C stood concluded making all subsequent proceedings and final assessment orders as non est.

Followed:Perfetti Van Melle India Pvt. Ltd. ITA No. 9116/DEL/2019 vide Order dated 11-8-2020 : 2020 TaxPub(DT) 3127 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



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