February 2023
Assessment — International transactions — Proceedings under section 144C mandatory — Draft assessment order proposing variations to returned income must be submitted to DRP — Order of remand — Order passed on remand must also be submitted to DRP — Failure to do so is an incurable defect
By K. B. Bhujle, Advocate
Reading Time 4 mins
72 Principal CIT vs. Appollo Tyres Ltd
[2022] 449 ITR 398 (Ker)
A. Y.: 2009-10
Date of order: 23rd September, 2021
Section: 144C of ITA 1961
Assessment — International transactions — Proceedings under section 144C mandatory — Draft assessment order proposing variations to returned income must be submitted to DRP — Order of remand — Order passed on remand must also be submitted to DRP — Failure to do so is an incurable defect
For the A. Y. 2009-10, for determination of the arm’s length price of the assessee’s international transactions, a reference was made to the Transfer Pricing Officer under section 92CA of the Income-tax Act, 1961. The AO served on the assessee the draft assessment order under section 144C(1) of the Act. The assessee filed objections to the draft assessment order under section 144C of the Act upon which the Dispute Resolution Panel(DRP) issued directions to the AO. The AO passed a final assessment order against which the assessee appealed before the Tribunal. The Tribunal allowed the appeal in part and remitted the matter to the AO for fresh assessment on the issues referred to the AO. The AO thereupon passed a revised final assessment order under section 144C of the Act. The assessee filed an appeal before the Commissioner (Appeals) against the revised final assessment order who allowed the appe
