Assessee filed its return of income for relevant assessment years. As there were international transactions, a reference was made by Assessing Officer to TPO under sub-section (2) of section 92CA. TPO passed an order under section 92CA(3) making upward adjustment.  Assessing Officer issued a final assessment order with TPO’s proposed additions, but it skipped requirement of issuing a draft assessment order under section 144C(1) of the Act. Assessing Officer shall, in first instance, forward a draft of proposed order of assessment to eligible assessee if he proposes to make any variation which is prejudicial to interest of such assessee. Since in instant case there was a variation in assessment order different from what was filed in return of income and since it was by way of an addition made, variation was prejudicial to interest of assessee. Therefore, failure to pass a draft assessment order under section 144C(1) would result in rendering final assessment as one without jurisdiction. (AY. 2009-10, 2010-11)