Sun Pharmaceutical Industries Limited Vs DCIT (Gujarat High Court)
Reassessment Invalid as Draft Assessment Order Was Not Issued; Assessment Annulled as Section 263 Remand Cannot Bypass Draft Order Mandate; Fresh Assessment Set Aside for Ignoring Mandatory Section 144C Procedure; High Court Quashes Reassessment Due to Breach of Draft Order Requirement
The Gujarat High Court decided two connected writ petitions filed by a pharmaceutical company challenging the assessment orders dated 26.03.2025 and 27.03.2025 passed under Section 143(3) read with Sections 263 and 144B of the Income-tax Act, 1961, for Assessment Years 2017–18 and 2018–19. Since common issues and parties were involved, the matters were disposed of by a common judgment, with Special Civil Application No. 5973 of 2025 treated as the lead case.
The petitioner had filed its original and revised returns declaring substantial losses. The case was selected for scrutiny under CASS, and a notice under Section 143(2) was issued. Owing to international transactions and transfer pricing risk parameters, the case was referred to the Transfer Pricing Officer (TPO), who passed an order under Section 92CA(3) on 26.07.2021, making an upward adjustment of ₹94.88 lakh. A draft assessment order under Section 144C was issued on 20.09.2021. As the petitioner did not approach the Dispute Resolution Panel (DRP), a final assessment order was passed on 29.10.2021.
