“Tribunal Remands Case as Assessee Didn’t Receive Draft Assessment Order Under Section 144B”

Order pronounced in the open court on 09/10/2024

In ITA No. 2959/Mum/2024 and S.A. No. 69/Mum/2024, the assessee claimed that the Assessing Officer (AO) failed to issue a draft assessment order as required under Section 144B of the Income Tax Act and challenged the disallowance of ₹10,08,000 in salary expenses and ₹1,85,43,071 in commission expenses under Section 37(1). The assessee argued that these expenses were legitimate business costs, duly recorded and supported by documentation, and requested an opportunity to submit further evidence. The Department’s Representative (DR) countered that the assessee had already been given sufficient chances to provide the necessary details but failed to do so. After considering both sides, the Tribunal remanded the case to the AO for fresh examination, directing the assessee to fully cooperate without seeking further delays. The appeal was allowed for statistical purposes, and the stay application was dismissed as infructuous.