DCIT, NEW DELHI vs. NEWBURY HOLDING LTD., NEW DELHI

ITA 5334/DEL/2015Status: DisposedITAT Delhi19 September 2025AY 2007-08Bench: S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)17 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee, being a foreign company and an 'eligible assessee' under Section 144C(15)(b) of the Income Tax Act, required the AO to pass a draft assessment order. Since this mandatory procedure was not followed, the final assessment orders were vitiated.

What were the facts?

The Assessing Officer (AO) made additions to the income of Newbury Holding Ltd., a foreign company, for AYs 2007-08 and 2008-09. The AO treated the company as a resident in India and taxed its income. The CIT(A) allowed the assessee's appeal, finding the company to be a non-resident and that the assessment orders were passed without a draft assessment order.

What were the issues?

Whether the assessment orders are invalid due to the failure of the AO to issue a draft assessment order to an eligible assessee as mandated by Section 144C of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 6(3),Section 9(1),Section 144C,Section 147,Section 148,Section 153C

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI

Before: S. RIFAUR RAHMAN & SHRI YOGESH KUMAR U.S.

For Appellant: Ms. Anjali Jain, Adv
Hearing: 20/08/2025Pronounced: 19/09/2025

Heard together (4 matters)

ITA No. 5335/Del/2015
C.O No. 349/Del/2015
ITA No.5334/Del/2015
C.O No.350/Del/2016

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PER YOGESH KUMAR, U.S. JM:

The above t

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