Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
ITAT allowed assessee's appeal, holding the scrutiny assessment void ab initio due to an invalid notice under s.143(2) of the Income-tax Act. The notice, issued pursuant to computer-aided scrutiny selection, did not specify whether the case was taken up for limited scrutiny, complete scrutiny, or compulsory manual scrutiny, contrary to binding CBDT instructions. ITAT held that revenue authorities are mandatorily required to adhere to such instructions and that non-compliance vitiates the jurisdiction assumed by the Assessing Officer. Consequently, the impugned notice under s.143(2) and all consequential assessment proceedings were declared invalid, and the matter was decided in favour of the assessee.
ITAT allowed assessee's appeal, holding the scrutiny assessment void ab initio due to an invalid notice under s.143(2) of the Income-tax Act. The notice, issued pursuant to computer-aided scrutiny selection, did not specify whether the case was taken up for limited scrutiny, complete scrutiny, or compulsory manual scrutiny, contrary to binding CBDT instructions. ITAT held that revenue authorities are mandatorily required to adhere to such instructions and that non-compliance vitiates the jurisdiction assumed by the Assessing Officer. Consequently, the impugned notice under s.143(2) and all consequential assessment proceedings were declared invalid, and the matter was decided in favour of the assessee.
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