Section 144C(2) — the law in short
What the courts have decided on section 144C(2), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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ACIT v Transworld Garnet India Private Limited
ITATHelps taxpayerValidity unconfirmed
The officer took the TPO's adjustment straight into a final order without giving me a draft order. The department says s.292B cures it. Does it?
It does not, on this line of authority. The Tribunal held that once the assessee answers the description of an 'eligible assessee' under s.144C(15)(b) and a variation prejudicial to it is proposed, s.144C(1) is mandatory, and passing the final order without first forwarding a draft is a failure of a jurisdictional condition precedent, not a procedural lapse. Section 292B cures only technical or clerical defects in proceedings otherwise validly initiated and cannot confer a jurisdiction that was never lawfully assumed. The Revenue's alternative plea for a remand to let the officer start again was also rejected: a nullity cannot be revived by remand.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.