Final assessment order invalid as AO failed to pass draft assessment order as required u/s 144C(1): ITAT Delhi

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 wer...