ITAT affirms CIT(A) order on Revenue's appeal, emphasizing Section 144C compliance (A)

The ITAT upheld the CIT(A) order, dismissing the Revenue's appeal against the assessment order under Section 143(3) for non-compliance with Section 144C requirements. Relying on decisions from High Courts, the ITAT confirmed the CIT(A)'s decision, emphasizing the mandatory nature of Section 144C procedures. The failure to adhere to statutory provisions rendered the assessment void, highlighting the importance of following prescribed procedures in assessment proceedings. The dismissal of the appeal underscored the significance of complying with Section 144C requirements for valid assessments.

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Issues involved:
1. Appeal against ITAT judgment on quashing assessment order under Section 143(3) without complying with Section 144C requirements.
2. Justification of ITAT in upholding CIT(A) order without setting aside assessment order for fresh assessment under Section 144C.
3. Error by ITAT in not setting aside assessment order for fresh assessment under Section 144C in the interest of natural justice.
4. Quashing of assessment order by ITAT based on Madras High Court decision without considering distinguishable facts.
5. Failure of ITAT to appreciate Revenue's request to set aside assessment order for fresh assessment under Section 144C.

Analysis:
1. The Revenue appealed against the ITAT judgment regarding the assessment order under Section 143(3) without following Section 144C requirements. The Tribunal upheld the CIT(A) order, leading to questions on the justification of quashing the assessment order without compliance with Section 144C.

2. The factual background involved the Assessing Officer making upward revisions in the assessee's income without following the prescribed procedure under Section 144C. The ITAT relied on decisions of the Madras High Court and Andhra Pradesh High Court to confirm the CIT(A)'s view, dismissing the Revenue's appeals.

3. The Revenue contended that the failure to follow the Section 144C procedure was a procedural defect and should have been curable. However, the Madras High Court and Andhra Pradesh High Court held that non-compliance with Section 144C is illegal, emphasizing the mandatory nature of the procedure.

4. The importance and mandatory nature of Section 144C were highlighted, with the statute providing a detailed procedure for variations in income of eligible assesses. The Assessing Officer is bound by the directions of the Dispute Resolution Panel, and non-compliance renders the assessment void.

5. The circulars dated 03.06.2010 and 19.11.2013 were cited, clarifying the applicability of Section 144C from 01.10.2009. The latter circular corrected an error in the former, emphasizing the statutory requirement for following the procedure. The dismissal of the tax appeal affirmed the mandatory nature of Section 144C and the importance of adhering to statutory provisions.

This detailed analysis of the judgment addresses the issues raised in the appeal, focusing on the procedural requirements under Section 144C and the significance of compliance with statutory provisions in assessment proceedings.

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