AO Jumped the Gun – Final Order Passed Before DRP, ITAT Hits Reset

Ramgopal Varma Ramaraju Vs ITO (ITAT Hyderabad) Assessee, a non-resident, did not file a return believing no income was taxable in India. The AO issued notice u/s 148 and later passed a Draft Assessment Order u/s 144C(1) on 14.02.2024 proposing additions. The assessee filed objections before the DRP on 14.03.2024 within the statutory 30 days, triggering the mandatory DRP procedure. However, without waiting for DRP directions, the AO went ahead and passed the Final Assessment Order u/s 147 r.w.s. 144 on 03.04.2024, which is a clear violation of Section 144C(5) & (13). When the DRP received ...