TaxTMI 
TaxTMI 
TaxTMI 
2025 (4) TMI 1668
X X X X Extracts X X X X
X X X X Extracts X X X X
....for hearing. 4. The assessee has filed additional grounds of appeal, which reads as follows: "1. For that on the facts of the case, the Assessing Officer issuing the notice u/s. 143(2) of the I.T. Act, 1961 on 27.09.2018 did not have jurisdiction over the case of the assessee, as there was no mention of the type of scrutiny under which the case of the assessee has been selected, hence the notice is bad-in-law and the assessment order passed on the basis of such notice is baseless and should be quashed. 2. For that on the facts of the case, the A.O. was wrong in issuing notice u/s. 143(2) on 27.09.2018 without complying to the CBDT Instruction F. No. 225/157/2017/ITA-II dated 23.06.2017 and so the notice issued u/s. 143(2) is not valid as per Provision of Act. 3. For that the appellant reserves the right to adduce any further ground or grounds, if necessary, at or before the hearing of the appeal." 5. In the additional grounds, the assessee has challenged the notice issued u/s. 143(2) of the Act. The Ld. AR drew our attention to the notice u/s. 143(2) of the Act which reads as follows: 6. It was submitted by the Ld. AR that the format of the 143(2) notice has been p....
X X X X Extracts X X X X
X X X X Extracts X X X X
............ 2. In view of the above, I would like to give you an opportunity to produce any evidence/information which you feel is necessary in support of the said return of income on or before. ....... 3. The above mentioned evidence/information is to be furnished online electronically in 'E- Proceeding' facility through your account in e-Filing website of Income-tax Department. Further proceedings shall also be conducted electronically (*). A brief note on salient features of 'E- Proceeding' is enclosed. 4. In case you do not wish to produce any evidence/information, as mentioned in para 2, you are requested to intimate the same electronically on or before ........ 5. Specific questionnaires/requisition of information or documents would be sent subsequently, if required. 6. Para(s) (2) to (4) are applicable if you have an account in e-Filing website of Income-tax Department. Till such an account is created by you, assessment proceedings shall be carried out either through your e-mail account or manually (if e-mail is not available). (*) Subject to exceptions as per the enclosed note Yours faithfully, Seal (Name of the Assessing Officer) (Designat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the said return of income on or before....... 3. The above mentioned evidence/information is to be furnished online electronically in 'E- Proceeding' facility through your account in e-Filing website of Income-tax Department. Further proceedings shall also be conducted electronically (*). A brief note on salient features of 'E- Proceeding' is enclosed. 4. In case you do not wish to produce any evidence/information, as mentioned in para 2, you are requested to intimate the same electronically on or before. .... 5. Specific questionnaires/requisition of information or documents would be sent subsequently, if required. 6. Para(s) (2) to (4) are applicable if you have an account in e-Filing website of Income-tax Department. Till such an account is created by you, assessment proceedings shall be carried out either through your e-mail account or manually (if e-mail is not available). 7. In cases where order has to be passed under section 153A/153C of the Income-tax Act, 1961 read with section 143(3), assessment proceedings would be conducted manually. (*) Subject to exceptions as per the enclosed note Yours faithfully, Seal (Name of the Assessing Officer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....#2352; आधारित संवीक्षाचयन Scrutiny (Computer Aided Scrutiny Selection) महोदय महोदया। भेसर्स, Sir/Madam/ M/s, आपको सूचित किया जाता है कि निर्धारण वर्ष 2017-18 के पावती संख्या 269322761301017 के अनुसार आपके द्वारा दिनांक 30/10/2017 को दाखिल की गई आयकर विवरणी को संवीक्षा के लिए चुना गया है।....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2368; भी आयकर विभाग की कार्यवाही सुविधा द्वारा की जायेगी। 'ई-कार्यबाही पर एक संक्षिप्त नोट आपके संदर्भ के लिए संलग्न है। 3. The evidence/information specified above has to be furnished online electronically through your E-filing account in incometaxindiaefiling.gov.in. Subsequent assessment proceedings shall also be conducted electronically through the 'E-Proceeding' facility of Income-tax Department. A brief note on 'E-Proceeding' is enclosed for your kind reference. 4. निर्धारण कार्यवाही के द....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated 29.11.2024, wherein the co-ordinate Bench has held as under:- "10. After hearing both the sides and the materials available on record, we find that the notice issued u/s 143(2) dated 9th August, 2017 was not in any of the formats as provided in the CBDT instruction F.No.225/157/2017/ITA-II dated 23.06.2017. We have examined the notice, copy of which is available at page no.1 of the Paper Book and find that the same is not as per the format of CBDT Instruction F.No. 225/157/2017/ITA-II dated 23.06.2017 as stated above. In our opinion, the instruction issued by the CBDT are mandatory and binding on the Income tax authorities failing which the proceedings would be rendered as invalid. Hon'ble Apex Court in case of UCO Bank (supra) held that the circular issued by CBDT in exercise of its statutory powers u/s 119 of the Act, are binding on the authorities. The Hon'ble Apex court held as under:- "The Central Board of Direct Taxes under section 119 of the Income-tax Act, 1961, has power, inter 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 Act w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessment framed consequentially is also invalid and is hereby quashed. The additional ground raised by the assessee is allowed." 8. The Ld. AR also drew our attention to the decision of the Coordinate bench of this Tribunal in the case of Tapas Kr. Das Vs. ITO in ITA No. 1660/Kol/2024 dated 11.03.2025, wherein the coordinate Bench of this Tribunal has held in para 6 to 8 as under: 06. "After hearing the rival contentions and perusing the materials available on record, we find that particularly the notice was issued u/s 143(2) of the Act, a copy of which is available at page no. 25 of the Paper Book. We note that the said notice has not been issued in consonance with the CBDT Instruction F No. 225/157/2017/ITA-II Dated 23.06.2017. The said notice is extracted below for the sake of ready reference:- "आमकर अधिनियम 1961 की धारा 143(2) के अधीन नोटिस Notice under section 143(2) of the Income-tax Act, 1961 संवीक्षा (कंप्....
X X X X Extracts X X X X
X X X X Extracts X X X X
....75;ंगे। 2. In this regard, an opportunity is being given to you to produce or cause to produce any evidence on which you may like to rely in support of the said return of income by 16/11/2018 at 01:00 PM. 3. उपर्युक्त निर्दिष्ट प्रमाण/ सूचना को आपको ऑनलाइन माध्यम से इलेक्ट्रॉनिक रूप में Income-taxindiaefiling.gov.in पर अपने ई- फाइलिंग खाता द्वारा प्रस्तुत किया जाना है। बाद की निर्धारण कार्यव....
X X X X Extracts X X X X
X X X X Extracts X X X X
....352;ा 3 लागू है। आपके द्वारा स्वयं अपना खाता न बना लेने तक निर्धारण कार्यवाही आपके द्वारा वर्णित की गई is created by you, assessment proceedings shall be carried out either through your specified e-mail account or manually (if e-mail is not available). संलग्नक : यचौधरि Enclosure as above" 07. In our opinion, the notice issued u/s 143(2) of the Act which is not in the prescribed format as provided under the Act is an invalid notice and accordingly, all the subsequent proceedings thereto would be invalid and void ab initio. The case of the assessee find support from the decision of Shib Nath Ghosh Vs. ITO in ITA No. 1812/KOL/2024 for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....NCORE v. CIT [1977] 110 ITR 336, the Board by another circular, withdrew with immediate effect the earlier circular. However, by circular dated October 9, 1984, the Board decided that Interest in respect of doubtful debts credited to suspense account by banking companies would be subjected to tax but Interest charged in an account where there has been no recovery for three consecutive accounting years would not be subjected to tax in the fourth year and onwards. The circular also stated that if there is any recovery in the fourth year or later, the actual amount recovered only would be subjected to tax in the respective years. This procedure would apply to assessment year 1979-80 and onwards." 08. Considering the facts of the instant case in the light of the decision of the co-ordinate bench, we are inclined to hold that notice issued u/s 143(2) of the Act is invalid notice and accordingly, the assessment framed consequentially to that is also invalid and is hereby quashed." 9. It was the submission that in view of the decision of the Coordinate Bench of this Tribunal on the identical issue the notice issued u/s. 143(2) is liable to be quashed and the consequential assessment ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....No. F. No. 225/402/2018/ITA.II dated 23.06.2017. 7. The CBDT issues various instructions and circulars that guide tax administration and policy implementation which are binding for its field formations. However, there are key differences between Instructions/Circulars issued by the CBDT and internal communications issued by the CBDT to the department. Instructions issued by CBDT: 1. Instructions issued by the CBDT are generally made public and are accessible to taxpayers, practitioners and the general public. They aim to clarify tax laws, outline procedures and provide policy guidelines and often provide clarifications regarding interpretation of tax laws, guidelines for procedures and can have significant implications for tax policies. 2. These instructions apply across all the department's offices and officers and providing a uniform approach to tax administration. These instructions are binding on the department. Internal Communication of CBDT to its Officers: 1. Internal communications are typically more operational and administrative in nature. They may relate to internal processes, staff management or administrative functions. These communications ar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s CIT(Mad) 147 ITR 212 ● M.S. Kimtee Vs CIT(MP) 151 ITR 73. 13. Omission to allow opportunity of cross-examination - Only a procedural irregularity - Remanded to A.O. ITO Vs M. Pirai Choodi (SC) 334 ITR 26: The High Court was satisfied that there was a glaring violation of the principles of natural justice apparent on the face of the records. Consequently, the impugned assessment order was quashed. On appeal, the Hon'ble Supreme Court observed that the High Court had set aside the order of assessment on the ground that no opportunity to cross-examine was granted, as sought by the assessee. The Supreme Court was of the view that the High Court should not have set aside the entire assessment order. At the most, the High Court should have directed the Assessing Officer to grant as opportunity to the assessee to cross-examine the concerned witness. In the circumstances, the Supreme Court was of the view that the High Court should not have quashed the assessment proceedings vide the impugned order. 14. It was held in Kailash Moudgil Vs DCIT(ITAT, SB-D) 72 ITD 97, Centurion Investment & International Trading Co. (P) Ltd. Vs ITO (ITAT, Del) 126 ITD 356, that simply because....