Microsoft Research Lab India Private Limited Vs DCIT (ITAT Bangalore)
TP Case- Draft Order Never Served- ITAT Strikes Down Entire 143(3) Order for Violating 144C- DAO Prepared on 15 April, FAA Passed on 23 April — 30-Day Window Violated
Assessee challenged the validity of the final assessment order dated 23.04.2021 passed u/s 143(3) r.w.s. 144B, contending that no draft assessment order (DAO) was ever served as required for an eligible assessee in a transfer pricing case. Tribunal examined the complete case-history screenshot & documents placed by the Revenue, which showed that although a draft order was prepared on 15.04.2021, there was no evidence of its service on the Assessee. Immediately thereafter, within eight days, the final assessment order was generated on 23.04.2021, well before expiry of the statutory 30-day period under section 144C(2) during which the Assessee is entitled to file objections before DRP.
Tribunal held that the entire procedure mandated by section 144C(1)–(4) had been violated, frustrating the Assessee’s right to raise objections before DRP. As no acceptance of variation was ever communicated & no objection period had elapsed, the AO was barred from passing the final assessment order. CIT(A) further erred in treating the matter as if the appeal was effectively against the TPO’s order, overlooking the jurisdictional illegality in the assessment.
