Relief to Microsoft and Others as Delhi HC quashes Income Tax Assessment Order issued w/o Draft Order

The Delhi High Court has quashed an income tax assessment order issued against Microsoft and other companies due to the failure of tax authorities to issue a draft assessment order. According to legal procedures, a draft order must be issued to the assessee before the final assessment is passed, allowing them an opportunity to contest the findings. The court ruled that bypassing this step violated the taxpayer’s rights and quashed the assessment. This judgment underscores the importance of procedural compliance in tax assessments and reaffirms the rights of taxpayers to be heard before final decisions are made.