The order was passed without following the procedure under section 144C(1) of the Act. On writ the Court relied on the SHL (India) Pvt. Ltd. v. DCIT, (. 2021) 438 ITR 317 (Bom)(HC) held that the requirement under Section 144C(1) of the Act to first pass the draft assessment order and to provide a copy thereof to the assessee is mandatory requirement that gave substantive right to the assessee to object to any variation, that is prejudicial to the assessee. Depriving petitioner of this valuable right to raise objection before DRP would be denial of substantive right to the assessee. Order of assessment was quashed and set aside. (WP No. 1802 of 2021, dt. 22.12.21)
Shell India Market Pvt. Ltd. v. ACIT (Bom.)(HC)(UR)
S. 144C : Reference to dispute resolution panel-Mandatory-Failure to follow the procedure under Section 144C(1) of the Act would be a jurisdictional error and not merely procedural error or a mere irregularity-Order of assessment was quashed and set aside. [S. 292B, Art. 226]