Draft Assessment Order Mandatory u/s 144C of Income Tax Act for ALP Variation : Karnataka HC Upholds ITAT Decision Declaring Order Void

The Karnataka High Court has upheld an ITAT decision, ruling that a draft assessment order is mandatory for any variation in the Arm's Length Price (ALP) under Section 144C of the Income Tax Act. The court declared an assessment order void for not adhering to this requirement. This ruling is a significant victory for taxpayers, as it reinforces the importance of due process and procedural safeguards in tax assessments. The decision also underscores the judiciary's role in ensuring that tax authorities follow the letter of the law.