Supreme Court informed of assessment order issue, CBDT Circulars discussed, affidavit filing ordered. The Supreme Court was informed that the assessment order had been served but not given effect to. The respondents confirmed this during the proceedings. A ...
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Supreme Court informed of assessment order issue, CBDT Circulars discussed, affidavit filing ordered.
The Supreme Court was informed that the assessment order had been served but not given effect to. The respondents confirmed this during the proceedings. A senior counsel referred to two CBDT Circulars, one clarifying Section 56(2)(viia) and the other withdrawing the first. The circulars were not on record, so the respondents suggested filing them with an affidavit. The court allowed one week for filing the affidavit and documents, with a provision for response within a week thereafter, and listed the matter for further proceedings while the interim order continued.
Issues: Assessment order service and effect, CBDT circulars applicability, filing of affidavit and documents.
Assessment Order Service and Effect: The Supreme Court was informed that the Assessing Officer had passed the assessment order, served it on the petitioners along with the demand, but it had not been given effect to as per the statement in the order itself. The learned Solicitor General of India representing the respondents confirmed this during the proceedings.
CBDT Circulars Applicability: During arguments, a senior counsel for one of the petitioners referred to two CBDT Circulars: Circular No.10/2018 dated 31st December, 2018, and Circular No.2/2019 dated 4th January, 2019. The first circular pertained to the clarification on the applicability of Section 56(2)(viia) of the Income Tax Act, 1961. However, the second circular withdrew the first one. As these circulars were not part of the record, the respondents suggested filing them supported by an affidavit to explain the purpose for which they were referred to and relied upon.
Filing of Affidavit and Documents: The respondents proposed filing the circulars along with an affidavit to clarify their relevance to the case. The senior counsel for the petitioner was granted one week to file the affidavit and documents, with a provision for the response to be filed within a week thereafter. The matter was listed for further proceedings on a specified date, with the interim order from a previous date to continue in the meantime.
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