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Company Registration 10 August 2026

Bombay High Court Ruling

The Bombay High Court has ruled that skipping the draft assessment order under Section 144C of the Income Tax Act makes the final assessment order invalid, as it does not comply with the mandatory procedural framework prescribed under the section, the court stated that the petitioner, SHL India Private Limited, an Indian company, had argued that the Assessing Officer had failed to follow the procedure laid down under Section 144C, the court held that the Assessing Officer's failure to issue a draft assessment order before passing the final order rendered the assessment invalid

The Bombay High Court has made a significant ruling regarding the draft assessment order under Section 144C of the Income Tax Act.
The court has stated that skipping this step makes the final assessment order invalid.
- The petitioner, SHL (India) Private Limited, argued that the Assessing Officer failed to follow the procedure laid down under Section 144C.
- The court held that the Assessing Officer's failure to issue a draft assessment order before passing the final order rendered the assessment invalid.
The court's decision has significant implications for companies in India, highlighting the importance of following the proper procedural framework when dealing with tax assessments.

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