https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=761443 https://www.taxtmi.com/caselaws?id=761443 Assessment proceedings concluded by non jurisdictional AO - ACIT, Panvel Circle being the jurisdictional Assessing Officer has not issued the notice u/s 143(2) of the Act and therefore, the assessment order is invalid - As argued assessee participated in the assessment proceedings without challenging the jurisdiction at any stage - HELD THAT:- It is an admitted fact that the assessee had filed its return of income before the ITO, Ward-2, Panvel who had issued notice u/s 143(2). Subsequently due to monetary limits of the income returned, the ITO Ward-2, Panvel transferred the file to the ACIT, Panvel Circle who issued notice u/s 142(1) of the Act. It is also an admitted fact that the assessee never challenged the jurisdiction of the ACIT, Panvel Circle for not issuing notice u/s 143(2) either before him or before the CIT(A) / NFAC and has participated in such assessment proceedings. We find an identical issue had come up in the case of DCIT vs. Kalinga Institute of Industrial Technology [ 2023 (6) TMI 1076 - SC ORDER] wherein quashed the assessment order on the ground that the jurisdiction to issue notice u/s 143(2) of the Act in case of assessee laid with JCIT (OSD) (Exemption), Bhubaneswar, whereas the notice u/s 143(2) of the Act was issued by the ACIT, Corporate Circle 1(2), Bhubaneswar, who has no jurisdiction but SC set aside the order of the Hon ble High Court and allowed the appeal filed by the Revenue on the ground that the records revealed that the assessee had participated pursuant to the notice issued u/s 142(1) of the Act and had not questioned the jurisdiction of the Assessing Officer and therefore, in such case, the order of the Hon ble High Court could not be sustained. Since the assessee in the instant case had participated in the assessment proceedings and had never challenged the jurisdiction of the ACIT, Panvel Circle who had issued the notice u/s 142(1) of the Act, therefore, we hold that the assessment order passed by the ACIT, Panvel Circle is valid. Bogus expenses - details provided by the assessee are not sufficient to verify the genuineness of the expenses claimed, the assessee has not provided the complete addresses of the parties to carry out third party verification - HELD THAT:- The assessee himself has given wrong information to the Assessing Officer as well as the CIT(A) / NFAC in respect of some of the parties. Despite the above, the Ld. CIT(A) / NFAC closed his eyes and allowed the appeal filed by the assessee which in our opinion, cannot be accepted. In our opinion, the estimation of profit @ 25% is uncalled for especially when the assessee has declared reasonable profit rate @ 9% of the total contract receipts and the decision relied on by case of Vijay Protein [ 2015 (4) TMI 1146 - SC ORDER] is distinguishable and not applicable to the facts of the present case. At the same time, it cannot be said that there is no leakage of revenue in the instant case especially when the assessee could not give the complete addresses of the parties to whom the payments have been made and that there are similar PAN numbers for different vendors which the assessee itself has admitted in the written submissions. Considering the totality of the facts of the case, we are of the opinion that lump sum of disallowance of Rs. 20 lakhs will meet the ends of justice. Case-Laws Income Tax Thu, 07 Nov 2024 00:00:00 +0530