Prior to passing of final assessment order it is mandatory to pass draft assessment order: Delhi HC

PCIT-7 Vs Sumitomo Corporation India (P) Ltd. (Delhi High Court) Delhi High Court held that passing of a draft assessment order as mandated under section 144C of the Income Tax Act is mandatory prior to passing of final assessment order. Accordingly, order liable to be set aside. Facts- Microsoft India (R&D) Pvt. Ltd., the writ petitioner, is stated to have filed its Return of Income pertaining to Assessment Year 2008-09 on 30th September 2008. The said return is stated to have been selected for scrutiny assessment and pursuant to which the AO made a reference to the Transfer Pricing Offic...