TaxTMI 
TaxTMI 
2012 (5) TMI 754
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..../2004 on 18th Oct., 2004 which is against the Law. 2. That the Ld. CIT(A) has passed the order ignoring the fact which is mention in the order sheet. That the notice is issued on 18.10.2004, which is against the law. 3. That the Ld. CIT(A) passed the order without considering the Instruction No.9/2004 issued by CBDT which binding on revenue authority." 3. We have heard rival submissions and gone through facts and circumstances of the case, Brief facts of the case are that the assessee company filed its return of income on 01.12.2003 declaring total loss at Rs. 1,72,647/- for the relevant assessment year 2003-04. The assessee's case was selected for scrutiny by issuing notice u/s. 143(2) of the Act on 18.10.2004 and the relevant order sheet entry of that date reads as under: "18.10.04: The case is selected for scrutiny vide para 3 of CBDT's Instruction No. 9/2004 Dt. 20.09.04. Issue notice u/s. 143(2) fix for hearing on 18.10.04." Ld. Counsel for the assessee in the above given facts stated that the selection of his case and issuance of notice u/s. 143(2) of the Act is against the selection norm set out by CBDT Instruction No.9/2004 dated 20.09.2004.....
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....ry from assessment records, which is available in assessee's paper book at pages 7 to 14 and the relevant entry is reproduced above. 4. According to Ld. Counsel for the assessee the process of selection of cases for scrutiny for corporate assessees for returns filed up to 31.03.2004 must be completed by 15.10.2004. For the returns filed during current FY 2004-05 the selection of cases for scrutiny will have to be completed within three months of the date of filing of return of income. But, here only para 3 first line states that the process for selection of cases for scrutiny of returns filed up to 31.03.2004, in the case of corporate assessees must be completed by 15.10.2004. Admittedly, this instruction is issued by CBDT vide Instruction No. 9/2004 dated 20.09.2004. As per order sheet entry dated 18.10.2004, the notice was issued on 18.10.2004 u/s. 143(2) of the Act which is beyond the prescribed time as per Instruction No. 9/2004 dated 20.09.2004. As per order sheet entry dated 18.10.2004 the notice was issued on 18.10.2004 u/s. 143(2) of the Act which is beyond the prescribed time as per Instruction No. 9/2004 dated 20.09.2004. We find that the CIT(A) has noted that the viol....
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....large number of cases are selected and notices issued with order sheet entries written by staff and are signed by the Assessing Officers. Therefore, there is always a probability of typographical or clerical mistake. The assessee has not taken the objection of violation of instruction no.9/2004 of the Board before the Assessing Officer during assessment proceedings and even there is no ground of appeal or additional ground of appeal taken by the assessee. The assessee has taken first time this objection in its written submissions given vide its letter dated 8th April, 2011. Therefore, in the facts and circumstances as discussed above, notice u/s. 143(2) dated 10th October, 2004 entered in the order sheet on 18th October, 2004; facts distinguishable from the case law mentioned by the assessee; non objection before the Assessing Officer; no specific ground/additional ground of appeal etc it is held that the notice was issued validly by the Assessing Officer u/s.143(2) and the proceedings for the scrutiny assessment were validity initiated by the Assessing Officer. The assessee has submitted during the appellate proceedings that the additional grounds may be admitted....
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....ons of the sections specified there or otherwise. The Board thus has power, iter alia, to tone down the rigour of the law and ensure a fair enforcement of its provisions, by issuing circulars in exercise of its statutory powers under section 119 of the Income-tax Act, which are binding on the authorities in the administration of the Act. Under section 119(2) (a), however, the circulars as contemplated therein cannot be adverse to the assessee. Thus, the authority which wields the power for its own advantage under the Act is given the right to forgo the advantage when required to wield it in a manner it considers just by relaxing the rigour of the law or in other permissible manners as laid down in section 119. The power is given for the purpose of just, proper and efficient management of the work of assessment and in public interest. It is a beneficial power given to the Board for proper administration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Hard cases which can be properly categorized as belonging to a class, can thus be given the benefit of relaxation of law by issuing circulars binding on the taxing aut....