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TMI BlogDraft Assessment Order Regime: Navigating the Multi-tiered Assessment Process and Distinct Nature of Section 144C AssessmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... t assessment order u/s 144C is mandatory or merely a procedural formality. The context and background surrounding this provision, including its enactment and the subsequent judicial pronouncements, are discussed. ARGUMENTS PRESENTED The primary contentions of the parties are outlined, along with the legal basis for each position and the evidence relied upon. The petitioners argued that the failure to frame a draft assessment order u/s 144C is a violation of a mandatory legal requirement, rendering the final assessment order null and void. They relied on various judicial precedents, such as JCB India Ltd., Nokia India, and C-Sam, which have consistently upheld the mandatory nature of the draft assessment order requirement. The respondents, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 144C as a self-contained code for assessment, creating a right for the assessee to challenge the draft order at multiple levels, thereby rendering the framing of a draft order a mandatory legal imperative, not merely a procedural irregularity. Regarding the respondents' submission to remand the matter to the AO u/s 153(6) , the court found this argument unpersuasive. The court clarified that Section 153(6) does not lift or extend the period of limitation prescribed by sub-sections (3) and (4) of Section 153 , which had already expired in the present cases. Additionally, the court held that a direction to remand the matter would not constitute a finding or direction as contemplated u/s 153(6) , as interpreted by the Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he multi-tiered process involved in Section 144C assessments, with the Dispute Resolution Panel (DRP) playing a crucial role in reviewing and guiding the assessment process. By upholding the mandatory requirement of framing a draft assessment order u/s 144C , the court reinforced the principles of procedural fairness and adherence to statutory requirements. The court's decision underscored the importance of preserving the assessee's right to challenge the draft order at multiple levels, as envisioned by the statutory framework. Furthermore, the court's clarification on the scope and applicability of Section 153(6) in the context of Section 144C assessments provided guidance on the limitations and boundaries of the court's po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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