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of <h1>Tribunal upholds notice validity, criticizes procedural violations</h1> The Tribunal dismissed the appeal challenging the jurisdictional validity of the notice under section 148 for reopening assessment, as grounds 1 to 3 were ... Income escaping assessment Issues:1. Jurisdictional validity of notice under section 148 for reopening assessment.2. Compliance with procedural sections for assessment under the Act.3. Acting beyond jurisdiction by Assessing Officer and CIT (Appeals).4. Validity of assessment order under section 144.5. Compliance with provisions of section 142(1) for completing assessment.6. Legitimacy of Rent Agreement and Assessing Officer's onus of proof.7. Bona fide in granting lease and charging rent.8. Treatment of rent charged by M/s. Alliance Brothers.9. Interpretation of Lease Deed terms and conditions.10. Applicability of legal rulings to the case.11. Departure from earlier Tribunal's order in subsequent assessment years.Analysis:1. The appeal contested the jurisdictional validity of the notice under section 148 for reopening the assessment, arguing that a notice under section 143(2) should have been served instead. The CIT (Appeals) was criticized for not complying with High Court decisions and following an allegedly illegal circular. The Tribunal dismissed grounds 1 to 3 as they were not pressed during the hearing.2. The challenge included the violation of procedural sections for assessment under the Act by the Assessing Officer, leading to the nullification of the assessment scheme's purpose. The CIT (Appeals) was accused of acting beyond jurisdiction by supplementing legal provisions to legalize the reopening proceedings under section 147.3. The issue of the validity of the assessment order under section 144 was raised, highlighting the Assessing Officer's failure to comply with mandatory provisions. The CIT (Appeals) was criticized for dismissing the assessee's appeal on this issue without jurisdiction.4. Concerns were raised regarding the notice under section 142(1) for completing the assessment, alleging inconsistency with the provisions and no default by the assessee. The CIT (Appeals) was faulted for not considering the submissions on this issue.5. The legitimacy of the Rent Agreement was questioned, with the Assessing Officer failing to discharge the burden of proof for showing it as sham. The CIT (Appeals) was accused of not investigating the issue.6. The appeal argued the assessee's bona fide in granting the lease and charging higher rent, supported by legally acceptable documentary evidence. The CIT (Appeals) was criticized for ignoring this evidence.7. The treatment of rent charged by M/s. Alliance Brothers was challenged, stating it should not be added as receivable rent or taxed as income from property. The CIT (Appeals) was faulted for not considering relevant legal rulings on Annual Letting Value and Capital receipt.8. The interpretation of terms and conditions in the Lease Deed was disputed, with the Assessing Officer and CIT (Appeals) accused of unjustified actions. The CIT (Appeals) was criticized for omitting to consider the explanations provided by the assessee.9. The applicability of legal rulings, specifically the McDowell & Co. Ltd. case, was debated, arguing against its relevance to the present case. The Tribunal highlighted the need to depart from the earlier Tribunal's order in subsequent assessment years.
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