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“draft assessment order”

Assessment ProceduresSection 144CSection 144C4,773 judgments

The decision most relied on for draft assessment order is ACIT v. Serajuddin & Co. (454 ITR 312), cited in 580 judgments on BharatTax.

Leading authorities on draft assessment order

ACIT v. Serajuddin & Co.
454 ITR 312 · 2023 · High Court
580
citing judgments

Approval under Section 153D of the Income Tax Act is mandatory for assessment orders in search cases. While elaborate reasons for approval are not required, the approving authority must provide some indication that it has examined the draft orders and found them to meet the requirements of law.

Principal Commissioner of Income-tax v. Subodh Agarwal
149 Taxmann.com 373 · 2023 · High Court
194
citing judgments

Approval of draft assessment orders under Section 153D must be granted with due application of mind, not mechanically. Approving multiple cases, such as 38 in a single day, without proper scrutiny amounts to mechanical approval, rendering the assessment invalid.

Vijay Television (P.) Ltd. v. DRP
369 ITR 113 · 2014 · High Court
140
citing judgments

Passing a final assessment order under Section 143(3) directly, without first issuing a draft assessment order under Section 144C(1) for an eligible assessee, constitutes a fundamental jurisdictional defect. This defect cannot be cured by a subsequent corrigendum, especially if issued beyond the prescribed period of limitation.

ESPN Star Sports Mauritius S.N.C. ET Compagnie v. Union of India
388 ITR 383 · 2016 · High Court
71
citing judgments

Failure to issue a draft assessment order under Section 144C(1) makes the final assessment order illegal and beyond jurisdiction. Non-compliance with Dispute Resolution Panel (DRP) directions renders the final assessment order bad in law.

JCB India Ltd. v. DCIT
398 ITR 189 · 2017 · High Court
49
citing judgments

The requirement to pass a draft assessment order under Section 144C of the Act is mandatory. A final assessment order issued without such a draft order is a nullity, constituting an incurable jurisdictional error that cannot be saved by Section 292B, even in set-aside proceedings following an ITAT remand.

Aggarwal v. NFAC
127 Taxmann.com 637 · High Court
34
citing judgments

Denying a personal hearing when specifically requested, especially after a search and during a pandemic, violates the principles of natural justice. The assessment and appellate proceedings themselves were conducted during the COVID-19 pandemic.

Hire Purchase (P.) Ltd. v. NFAC
128 Taxmann.com 190 · High Court
34
citing judgments

Failure to grant a personal hearing to an assessee when income is likely to be varied based on submitted evidence violates the principles of natural justice and renders the assessment order invalid.

Chandrakant Dharia v. ITO
469 ITR 262 · Reported
34
citing judgments

An adverse assessment order cannot be passed without granting an opportunity of personal hearing to the taxpayer. Where income is to be varied based on evidence, a personal hearing is mandatory.

Judgments citing draft assessment order

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 77/CTK/2022[2008-09]Status: DisposedITAT Cuttack01 Feb 2023AY 2008-09

Bench: Shri George Mathan & Shri Arun Khodpiaआयकर अऩीऱ सं/Ita Nos.76 To 81/Ctk/2022 (ननधाारण वषा / Assessment Years :2007-2008 To 2012-2013) Bibhudutta Panda, Vs Acit, Corporate Circle-1(2), Plot No.73 & 74, Jayadev Vihar, Bhubaneswar Bhubaneswar-751013 Pan No. :Adapp 6398 R (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR
Section 142(1)Section 153ASection 153D

proceed with the assessment order without awaiting any further approval from him. The relevant portion of his approval reads as follows :- “The draft assessment orders in all the above noted assessees are approved accordingly as per statutory requirement u/s. 153D only in the light of the suggestions given above. Therefore ... book (Volume-1) filed by the ld. AR of the assessee. The Addl. CIT, Range-1 (Supervisory Office) has clearly mentioned therein that draft assessment orders in the case of M/s. Neelachal Carbo Metallics Pvt. Ltd. have been received late i.e. 25.03.2015 but there is no mention about other assesses

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 76/CTK/2022[2007-08]Status: DisposedITAT Cuttack01 Feb 2023AY 2007-08

Bench: Shri George Mathan & Shri Arun Khodpiaआयकर अऩीऱ सं/Ita Nos.76 To 81/Ctk/2022 (ननधाारण वषा / Assessment Years :2007-2008 To 2012-2013) Bibhudutta Panda, Vs Acit, Corporate Circle-1(2), Plot No.73 & 74, Jayadev Vihar, Bhubaneswar Bhubaneswar-751013 Pan No. :Adapp 6398 R (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR
Section 142(1)Section 153ASection 153D

proceed with the assessment order without awaiting any further approval from him. The relevant portion of his approval reads as follows :- “The draft assessment orders in all the above noted assessees are approved accordingly as per statutory requirement u/s. 153D only in the light of the suggestions given above. Therefore ... book (Volume-1) filed by the ld. AR of the assessee. The Addl. CIT, Range-1 (Supervisory Office) has clearly mentioned therein that draft assessment orders in the case of M/s. Neelachal Carbo Metallics Pvt. Ltd. have been received late i.e. 25.03.2015 but there is no mention about other assesses

Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. ACIT, Circle-3(1), Gurgaon

In the result, the appeal of the assessee is partly allowed

ITA 888/DEL/2021[2009-10]Status: DisposedITAT Delhi01 Feb 2023AY 2009-10

Bench: Shri Anil Chaturvedi & Shri Yogesh Kumar U.S.

For Appellant: ShriFor Respondent: Shri Rajesh Kumar
Section 143(3)Section 144CSection 254Section 92C

return for the Assessment Year 2009-10 showing total income of Rs.13,19,79,440/-, the case was selected for scrutiny and a draft assessment order u/s 144C of the Income Tax Act, 1961(‘Act’ for short) was passed on 06/03/2013 proposing Transfer Pricing Adjustment of Rs.1 ... assessee filed objection in response to the draft assessment order before the Dispute Resolution Panel (‘DRP’ for short) and the DRP vide order dated 18/12/2013 disposed off the objection by confirming the additions proposed in the draft assessment order. Accordingly, assessment order u/s 143(3) read with Section 144C

Oxbow Energy Solutions Llc, Usa vs. DCIT International Taxation - 2(2)(2), New Delhi

In the result, the appeal is allowed, as indicated above

ITA 574/DEL/2021[2012-13]Status: DisposedITAT Delhi31 Jan 2023AY 2012-13

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2012-13

Section 10(38)Section 133(6)Section 142(1)Section 144Section 144CSection 147Section 148Section 69A

order to the best of his judgment under section 144 read with section 147 and 144C(1) of the Act. 4. Against the draft assessment order so proposed, the assessee raised objections before learned DRP. In course of proceeding before learned DRP, the assessee explained the reason for non-compliance ... pursuance to the directions of learned DRP, the Assessing Officer, though, deleted the addition of Rs.53,14,19,634/- proposed in the draft assessment order, however, he added the amount of Rs.26,56,35,337/- accepted in the draft assessment order. 6. We have considered rival submissions and perused

Inteva Products Netherlands Bv, Netherlands vs. ACIT, Circle- 2(1)(1), Intl. Taxation, New Delhi

In the result, the appeal is party allowed

ITA 7545/DEL/2017[2014-15]Status: DisposedITAT Delhi31 Jan 2023AY 2014-15

Bench: Shri G.S. Pannu & Shri Saktijit Deyassessment Year: 2014-15

Section 143(3)Section 144CSection 9(1)(vii)

active of management and consultancy services. Accordingly, he brought to tax the amount at the hands of the assessee. Against the draft assessment order, assessee raised objections before DRP. However, learned DRP rejected the objection. 6. Before us, learned counsel appearing for the assessee submitted that the services rendered ... learned DRP. 10. We have considered rival submission and perused the material available on record. 11. As could be seen from the draft assessment order, the Assessing Officer has very clearly and categorically mentioned that assessee’s employees never visited India for rendering any kind of services. Whatever services rendered

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 70/SRT/2022[2018-19]Status: DisposedITAT Surat25 Jan 2023AY 2018-19

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 69/SRT/2022[2017-18]Status: DisposedITAT Surat25 Jan 2023AY 2017-18

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 68/SRT/2022[2016-17]Status: DisposedITAT Surat25 Jan 2023AY 2016-17

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 67/SRT/2022[2015-16]Status: DisposedITAT Surat25 Jan 2023AY 2015-16

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 66/SRT/2022[2014-15]Status: DisposedITAT Surat25 Jan 2023AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 65/SRT/2022[2013-14]Status: DisposedITAT Surat25 Jan 2023AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

Sureshbhai Balubhai Asodariya, Surat vs. Pr. CIT (Central)Circle, Surat

In the result, this appeal of assessee is dismissed

ITA 64/SRT/2022[2012-13]Status: DisposedITAT Surat25 Jan 2023AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 132Section 143(2)Section 143(3)Section 153ASection 153DSection 254(1)Section 263

assessee failed to furnish proper explanation, accordingly, the Assessing Officer proposed to add the same in total income. The Assessing Officer prepared draft assessment order and sought statutory approval of Joint Commissioner of Income tax (JCIT) for making addition of Rs. 20,88,500/-. Statutory approval under Section 153D ... sending the proposal of the draft assessment to the competent authority for obtaining approval. Before making any proposal for addition in the draft assessment order, the Assessing Officer should have at least called for an explanation from assessee or should have issued a show cause notice. Since there

DCIT, International Taxation, Circle Gurgaon, Gurugram vs. Lummus Technology Heat Trasfer Bv- India Branch Office, Gurgaon

In the result, the appeals of the Revenue are dismissed

ITA 8919/DEL/2019[2007-08]Status: DisposedITAT Delhi24 Jan 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Vishal Kalra, Adv. &For Respondent: Sh. Bhagwati Charan, Sr. DR
Section 154Section 271(1)(c)Section 44D

assessment year 2007-08, the assessee had filed return of income on 5.11.2011 declaring Nil taxable income. The Assessing Officer passed a draft assessment order dated December 23, 2010 under section 143(3) read with section 144C of the Act, assessed the income of the assessee at Rs.2

DCIT, International Taxation, Circle Gurgaon, Gurugram vs. Lummus Technology Heat Trasfer Bv- India Branch Office, Gurgaon

In the result, the appeals of the Revenue are dismissed

ITA 8918/DEL/2019[2007-08]Status: DisposedITAT Delhi24 Jan 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Vishal Kalra, Adv. &For Respondent: Sh. Bhagwati Charan, Sr. DR
Section 154Section 271(1)(c)Section 44D

assessment year 2007-08, the assessee had filed return of income on 5.11.2011 declaring Nil taxable income. The Assessing Officer passed a draft assessment order dated December 23, 2010 under section 143(3) read with section 144C of the Act, assessed the income of the assessee at Rs.2

DCIT, International Taxation, Circle Gurgaon, Gurugram vs. Lummus Technology Heat Trasfer Bv- India Branch Office, Gurgaon

In the result, the appeals of the Revenue are dismissed

ITA 8917/DEL/2019[2007-08]Status: DisposedITAT Delhi24 Jan 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Vishal Kalra, Adv. &For Respondent: Sh. Bhagwati Charan, Sr. DR
Section 154Section 271(1)(c)Section 44D

assessment year 2007-08, the assessee had filed return of income on 5.11.2011 declaring Nil taxable income. The Assessing Officer passed a draft assessment order dated December 23, 2010 under section 143(3) read with section 144C of the Act, assessed the income of the assessee at Rs.2

Teejay India Private Limited, Visakhapatnam vs. Assistant Commissioner of Income Tax, Dc/Ac 4(1), Visakhapatnam

In the result, appeal filed by the assessee is partly allowed

ITA 152/VIZ/2021[2016-17]Status: DisposedITAT Visakhapatnam23 Jan 2023AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri Darpan Kirpalani CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 10ASection 142(1)Section 143(2)Section 143(3)Section 36(1)(va)Section 92C

delayed payment of PF & ESI as per the provisions of section 36(1)(va) of the Act. The Ld. AO accordingly passed draft assessment order on 29/11/2019. Aggrieved by the draft assessment order of the Ld. AO, the assessee preferred an appeal before the Ld. Dispute Resolution Panel, Bangalore

Lewek Altair Shipping Private Limited, Kakinada vs. Deputy Commissioner of Income-Tax, Circle-1, Kakinada

In the result, the appeal of the assessee is dismissed

ITA 147/VIZ/2021[2013-14]Status: DisposedITAT Visakhapatnam23 Jan 2023AY 2013-14

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.146/Viz/2021 & 147/Viz/2021 (ननधधारण वर्ा / Assessment Year : 2012-13 & 2013-14) Lewek Altair Shipping Private Limited Vs. Dy.Commissioner Of Income Tax D.No.3-16-193/1, Sri Vidya Colony Circle-1 Suryarao Peta, Kakinada Kakinada [Pan : Aabcl9766C] अपीलधथी की ओर से/ Appellant By : Shri Jitendra Singh, Ar प्रत्यधथी की ओर से / Respondent By : Shri Mn Murthy Naik, Cit(Dr) सुनवधई की तधरीख / Date Of Hearing : 21.11.2022 घोर्णध की तधरीख/Date Of Pronouncement : 23.01.2023 O R D E R Per Shri S.Balakrishnan: These Appeals Are Filed By The Assessee Against The Orders Of The Ao/Tpo/Dispute Resolution Panel-1, Bengaluru(Drp In Short) U/S 143(3) R.W.S 144C Of The Income Tax Act For The Assessment Years 2012-13 & 2013-14 Respectively. Since The Facts Are Identical, Both The Appeals Are Clubbed, Heard Together & Disposed Off In A Common Order For The Sake Of Convenience & The Facts Are Extracted From I.T.A.No.146/Viz/2021 For The A.Y.2012-13. 2 Ita No.146/Viz/2021 & 147/Viz/2021, A.Y.2012-13 & 2013-14 Lewek Altair Shipping Private Ltd., Kakinada

For Appellant: Shri Jitendra Singh, ARFor Respondent: Shri MN Murthy Naik, CIT(DR)
Section 143(3)Section 92C

enhance the total income of the assessee by Rs.27,36,16,334/-. Based on the order of the Ld.TPO, the Ld.AO passed draft assessment order u/s 143(3) r.w.s. 144C(1) of the Act. 4. Aggrieved by the Draft Assessment Order, the assessee filed it’s objections before the Ld.DRP

Lewek Altair Shipping Private Limited, Kakinada vs. Deputy Commssioner of Income Tax, Circle-1, Kakinada

In the result, the appeal of the assessee is dismissed

ITA 146/VIZ/2021[2012-13]Status: DisposedITAT Visakhapatnam23 Jan 2023AY 2012-13

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.146/Viz/2021 & 147/Viz/2021 (ननधधारण वर्ा / Assessment Year : 2012-13 & 2013-14) Lewek Altair Shipping Private Limited Vs. Dy.Commissioner Of Income Tax D.No.3-16-193/1, Sri Vidya Colony Circle-1 Suryarao Peta, Kakinada Kakinada [Pan : Aabcl9766C] अपीलधथी की ओर से/ Appellant By : Shri Jitendra Singh, Ar प्रत्यधथी की ओर से / Respondent By : Shri Mn Murthy Naik, Cit(Dr) सुनवधई की तधरीख / Date Of Hearing : 21.11.2022 घोर्णध की तधरीख/Date Of Pronouncement : 23.01.2023 O R D E R Per Shri S.Balakrishnan: These Appeals Are Filed By The Assessee Against The Orders Of The Ao/Tpo/Dispute Resolution Panel-1, Bengaluru(Drp In Short) U/S 143(3) R.W.S 144C Of The Income Tax Act For The Assessment Years 2012-13 & 2013-14 Respectively. Since The Facts Are Identical, Both The Appeals Are Clubbed, Heard Together & Disposed Off In A Common Order For The Sake Of Convenience & The Facts Are Extracted From I.T.A.No.146/Viz/2021 For The A.Y.2012-13. 2 Ita No.146/Viz/2021 & 147/Viz/2021, A.Y.2012-13 & 2013-14 Lewek Altair Shipping Private Ltd., Kakinada

For Appellant: Shri Jitendra Singh, ARFor Respondent: Shri MN Murthy Naik, CIT(DR)
Section 143(3)Section 92C

enhance the total income of the assessee by Rs.27,36,16,334/-. Based on the order of the Ld.TPO, the Ld.AO passed draft assessment order u/s 143(3) r.w.s. 144C(1) of the Act. 4. Aggrieved by the Draft Assessment Order, the assessee filed it’s objections before the Ld.DRP

Alcatel Lucent India Limited, Delhi vs. ACIT Central Circle 15, Delhi

In the result, the assessee’s appeal is allowed

ITA 366/DEL/2022[2017-18]Status: DisposedITAT Delhi19 Jan 2023AY 2017-18
For Appellant: Shri Ankul Goyal, AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR
Section 143(3)Section 92C

addition of Rs. 147,38,75,440/- was made to the income of the assessee on account of the TP Adjustment in the draft assessment order u/s 143(3) r.w.s. 144C dated 26.03.2021. 5. Aggrieved with the order of AO, assessee company filed writ petition before Hon'ble High Court ... quashing the assessment order dated 26.03.2021. Assessee argued before the High Court that title of the said assessment order dated 26.03.2021 was 'Draft Assessment Order u/s 143(3) r.w.s. 144C of the Act, 1961" but it was final assessment order. Assessee objected that final assessment order was passed without giving

Ceva Logistics India P.Ltd, Gurgaon vs. DCIT, Circle-1(1), Gurgaon

In the result, appeal of the assessee is partly allowed

ITA 8124/DEL/2018[2014-15]Status: DisposedITAT Delhi19 Jan 2023AY 2014-15

Bench: Sh. G.S. Pannu & Sh. Saktijit Dey

Section 143

paid of Rs. 15,05,26,398/- as adjustment to be made to the income of the assessee. While framing the draft assessment order, the Assessing Officer added back the amount to the income of the assessee. Challenging the addition, the assessee raised objections before learned DRP. However, Learned