AO Must Pass Draft Assessment If He Proposes Variation In Returned Income: Chennai ITAT Explains Scope Of Sec 144C

In a recent Chennai ITAT case, the AO's draft assessment variation was contested under Sec. 144C of the Income Tax Act. The ITAT ruled that the variation exceeded the threshold allowed under Sec. 144C(1)(b), warranting referral to the Dispute Resolution Panel (DRP) for a fresh look. The tribunal emphasized the importance of adhering to statutory limits in draft assessments to ensure procedural fairness and compliance with tax laws.