Case Law Details
DCIT Vs Newbury Holding Two Ltd (ITAT Delhi)
ITAT Delhi held that assessee qualifying as an ‘eligible assessee’, AO is mandatory required to first pass a draft assessment order as per section 144C(1) of the Income Tax Act. Passing of assessment order without following the mandatory requirement results in invalidation of final assessment order.
Facts-
A search & seizure operation u/s 132 was conducted by the Investigation Wing of the Income Tax Department in M/s Focus Energy Group of cases. In the course of search operation, certain incriminating documents pertaining to the assessee were found and seized. Accordingly, notice u/s 153C was issued on the assessee and assessment has been completed u/s 153C/144 of the Income Tax Act on 28.03.2014.
The assessee is a non-resident corporate entity, BVI based company incorporated in 1994 owns equipments related to exploration and development of oil fields and lease them to company named “Focus Energy Ltd.” which is deducting tax on lease rent paid to assessee as per the provisions of TDS.
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