TaxTMI 
TaxTMI 
2023 (3) TMI 252
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....he Learned Principal Commissioner of Income Tax erred in setting aside an assessment, which was not a valid assessment in the eyes of law. 2) The learned Principal Commissioner of Income Tax ought to have appreciated that an assessment, which is ab-initio void is incapable of revision u/s 263 of the Income Tax Act. 3) The learned Principal Commissioner of Income Tax went wrong in stating that the appellant cannot raise the ground of invalidity in a revisionary proceedings. The appellant was only trying to point the infirmity in the proceedings. An order that is nonest in the eyes of law cannot be revised as per law. 4) The learned Principal Commissioner of Income Tax ought to have appreciated that in order to assu....
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....uction. Thus, it is clear that the AO has mistakenly and erroneously omitted to consider the above facts, while completing the assessment, thereby causing prejudice to the interests of revenue." 3. On appeal, Ld. CIT(A) observed that the AO received information that the assessee had made huge cash deposits in specified bank notes of the denomination Rs.1000/- and Rs.500/- in his bank accounts. Since the assessee did not file his return for AY 2017-18 within the prescribed time limit u/s 139, notice u/s 142(1) was issued on 22.12.2017. In the absence of any reply from the assessee even after a period of 18 months, further notices u/s 142(1) dated 19.06.2019 and 29.08.2019 were served on the assessee. Ultimately, the assessee file....
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....o prejudicial to the interest of the revenue. 3.1 The above omission by the Assessing Officer in the assessment order is erroneous in so far as it is prejudicial to the interest of revenue. Therefore, Ld. CIT(A) held that the assessment order on the above issue is set aside to the assessing officer for de-novo examination and to pass a speaking order in accordance with law as per time limit specified under Section 153 of the Act, after affording due opportunity to the Assessee. Against this assessee is in appeal before us. 4. We have heard the rival submissions and perused the materials available on record. At the time of hearing, the Ld. A.R. made a primary objection by way of ground No.2 that assessment order in this case was passed....
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....l irregularity and the same is not curable". 5. Further, same view was taken by Hon'ble Supreme Court in the case of CIT Vs. Laxman Das Khandelwal reported in 417 ITR 325, wherein held as under: "According to Section 292BB of the Act, if the assesee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. The scope of the provision is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of the assessee. It is, however, to be noted that the Section does not save complete absence of notice. For Section 292BB to apply, the notice must have emanated from the department.....