The assessee has challenged the draft assessment order on thee ground that the assessee is not an ‘eligible assesseee ’ as per section 144C(15) of the Act and the AO ought not to have passed the draft assessment order u/s 144C(2) of the Act . On appeal the Tribunal held that since no variation under section 92CA(3) of the Act was warranted and that ‘assessee not being a foreign company will not categorize the assessee to be an ‘eligible assessee’ as per the provision of section 144C(15)(B) of the Act which defines an ‘eligible assessee’. Hence the draft assessment order passed under section 144C(1) of the Act and the final assessment order pursuant to the draft order are not in accordance with the mandate of the Act. Draft order and final assessment order is quashed . Relied on Maquet Holdings B.V. & Co v. DCIT (2019) 106 taxmann.com 68 ( Mum)( Trib) . (ITA No. 454/Mum/2022 dated October 10, 2022) ( AY. 2017 -18 )
B. Braun Medical (India) Pvt Ltd v. DCIT (Mum)(Trib) www.itatonline .org
S. 144C: Reference to dispute resolution panel – Transfer pricing – No variation in Arm’s Length Price – Barred by limitation – No draft order as assessee is not an “eligible assessee” – Draft order and final assessment order is quashed. [ S.92CA(3), 144C(15)(b) ]