TaxTMI 
TaxTMI 
2024 (7) TMI 125
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....6 days; the Assessing Officer (AO) has filed an application seeking condonation of delay in filing of appeal. The ld. Authorized Representative (AR) of the assessee has not raised any serious objection in condoning the delay. After perusal of the application filed by the Department, we are satisfied that delay in filing of appeal was not intentional but was for bonafide reasons stated therein. Therefore, delay of 16 days in filing of appeal is condoned and appeal is admitted for hearing on merits. 3. The Department in appeal has assailed the order of CIT(A) by raising following grounds:- 1. Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) erred in cancelling the assessment order on the basis of CBDT ....
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....ubmitted that the Assessing Officer (AO) has passed final assessment order dated 28.03.2013, in violation of the provisions of section 144C(1) of the Income Tax Act, 1961(hereinafter referred to as the 'Act'). As per the provisions of said section, the Assessing Officer is mandatorily required to pass draft assessment order before passing final assessment order u/s. 144C(3) of the Act, where no objections are filed by the assessee. The CIT(A) has allowed assessee's appeal in a well reasoned order following the decision of Hon'ble Andhra Pradesh High Court in the case of Zuari Cement Ltd. vs. ACIT in WP No.5557 of 2012 decided on 21.2.2013, upheld by the Hon'ble Supreme Court of India in SLP filed by the Department titled ACIT vs Zuari Cemen....
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....of Union of India & Others vs. Ashish Agarwal 236 Taxman 183 (SC) that contend that bonafide error by AO in applying the provisions of the Act, deserves leeway and the assessment order need not be quashed. 6. Rebutting the submissions made on behalf of the Department, the ld. AR submits that in similar set of facts where the assessment order was passed prior to the date of CBDT Circular No. 9/2013 (supra), the Hon'ble High Court in the case of Zuari Cement Ltd. vs. ACIT (supra), held the assessment order void and unenforceable. 7. We have heard the submissions made by rival sides and have examined the orders of authorities below. We have also considered the decisions and circulars on which respective sides have placed reliance in supp....
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.... on or after 1st October, 2009 irrespective of the assessment year to which it pertains. Amendments to other sections of the Income-tax Act referred to in para 45.3 of the circular 5/2010 dated 3rd June, 2010 shall also apply from 1st October, 2009". 9. The Hon'ble Andhra Pradesh High Court in the case of Zuari Cement Ltd. vs. ACIT (supra) has considered the memorandum explaining Finance Bill and the Notes and clauses accompanying the Finance Bill and the Circular No. 5/2010 issued by CBDT clarifying the provisions of Section 144C of the Act. The Hon'ble High Court after examining the aforesaid circular held as under:- "It is not disputed that the memorandum explaining the Finance Bill and the Notes and clauses accompanying the ....
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....ssessment order null and void that was passed without passing the draft assessment order in violation to mandatory provisions of Section 144C(1) of the Act. 11. Subsequently, the CBDT came out with another clarificatory circular dated 19.11.2013, the relevant contents of the same have been reproduced by us hereinabove in para 8 of this order. The subsequent clarificatory circular issued by CBDT is in line with the provisions of Section 144C(1) of the Act. The CBDT Circular and decision referred above makes it explicit that after 01.10.2009, the AO is statutorily required to pass draft assessment order u/s. 144C(1) of the Act, if he makes any addition, before passing the final assessment order u/s. 144C(3) of the Act. 12. The Coordinat....