Delhi High Court Quashes Draft Order Issued by AO Due to Communication Gap:

Delhi High Court Quashes Draft Order Issued by AO Due to Communication Gap The Delhi High Court quashed a draft order, which was mistakenly issued by the AO due to the communication gap between the tax authorities and the Delhi High Court.

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The High Court, in its earlier order, had set aside an order passed by the Transfer Pricing Officer (TPO) against the petitioner, with directions to give the copies of the relied-upon agreements to the petitioners. The petitioner was directed to file its reply after receiving the agreements, after which the TPO was required to pass a fresh order. However, due to a communication gap, the earlier order of the Delhi High Court could not reach the Assessing Officer (AO). As a result, the assessing officer passed a draft order under Section 144C(1) of the Income Tax Act, 1961.

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The court noted that the said agreements have been provided to the petitioners. The petitioner was required to file its reply. The court, therefore, quashed the order. Additionally, it also extended the timelines of the proceedings before the TPO/AO and DRP by 60 days.