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TMI BlogEvaluating Jurisdictional Validity in Taxation: The Significance of Draft Assessment Orders under Section 144CX X X X Extracts X X X X X X X X Extracts X X X X ..... on the interpretation and application of Section 144C of the Income Tax Act, 1961, in the context of a foreign entity's income tax assessment in India. The case involves an intricate assessment of procedural adherence, jurisdictional authority, and statutory interpretation concerning the issuance of a draft assessment order under Section 144C. Background The central issue revolves around an orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Principal Commissioners or Commissioners of Income Tax constituted by the Central Board of Direct Taxes. Applicability to Foreign Entities The petitioner, a foreign entity, qualified as an 'eligible assessee' under Section 144C(15)(b). Therefore, the issuance of a draft assessment order was a statutory requirement that could not be bypassed. Interpretation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the final assessment order and subsequent proceedings. The court noted that this omission was not merely a procedural oversight but a substantive lapse, rendering the impugned order and subsequent notices void of jurisdiction. Impact on the Assessee's Rights By not issuing a draft assessment order, the assessee was denied the opportunity to object before the Dispute Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant jurisdictional and legal implications, impacting the rights of the assessee and the validity of the assessment orders and subsequent proceedings. This analysis offers a nuanced understanding of the legal intricacies in the interpretation and application of Section 144C of the Income Tax Act, 1961, reinforcing the principle that statutory mandates are not mere procedural formalities but essen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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