Supreme Court remands Assessment Order, directs reconsideration in light of omitted tax provision.

The Supreme Court set aside the High Court's decision to quash the Assessment Order, remanding the case for reconsideration in light of the omission of Section 144B(9) of the Income Tax Act, 1961. The Court directed the High Court to assess the impact of the omission on the CBDT Circular and reconsider the case on its merits, allowing all contentions from both parties to be considered.

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Issues involved:
The issues in this case involve the quashing of an Assessment Order by the High Court based on a CBDT Circular and the subsequent omission of Section 144B(9) of the Income Tax Act, 1961.

Judgment Summary:

Issue 1: Quashing of Assessment Order
The Revenue appealed the High Court's decision to quash the Assessment Order, citing the reliance on the CBDT Circular dated 13.08.2020. The Circular stated that any assessment order not in conformity shall be treated as non-est. The Revenue argued that the Circular is similar to Section 144B(9) of the Act, which was later omitted. The assessee contended that both the Assessment Order and the Circular were issued before the omission of Section 144B(9). The Supreme Court set aside the High Court's decision and remanded the matter for reconsideration in light of the omission of Section 144B(9) on the Circular's applicability.

Issue 2: Effect of Omission of Section 144B(9)
The Supreme Court remanded the case to the High Court to assess the impact of the omission of Section 144B(9) on the CBDT Circular. The Court directed the High Court to reconsider the case in accordance with the law and on its own merits, keeping all contentions open for both parties to be considered.

In conclusion, the Supreme Court disposed of the appeal and pending applications, instructing the High Court to reevaluate the case considering the effect of the omission of Section 144B(9) on the CBDT Circular.

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