TaxTMI 
TaxTMI 
2025 (4) TMI 1668
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....nd we condone the delay and admit the appeal 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 su....
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....led vide ack. no. on ....................... has been selected for Scrutiny. Following issue(s) have been identified for examination: ........................................... ................................................. ........................................... ......................... 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 ....
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....... To Sir/Madam This is for your kind information that the return of income for Assessment Year. .................................... filed vide ack. no ........................... on has been selected for Scrutiny on the basis of parameter at Para 1 ( ............) of Manual Compulsory Guidelines of CBDT issued vide Instruction No. ...................... . dated ............. 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 ....
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....t, 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 (कंप्यूटर आधारित संवीक्षाचयन Scrutiny (Computer Aided Scrutiny Selection) महोदय महोदया। भेसर्स, Sir/Madam/ M/s, आपको सूचित किया जाता है कि निर....
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.... ऑनलाइन माध्यम से इलेक्ट्रॉनिक रूप में Incometaxindi-aefiling.gov.in पर अपने ई-फाईलिंग खाता द्वारा प्रस्तुत किया जाना है। बाद की निर्धारण कार्यवाही भी आयकर विभाग की कार्यवाही सुविधा द्वारा की जायेगी। 'ई-कार्यबाही पर एक संक्षिप....
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....81;वारा 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 : यचौधरी Enclosure as above " 7. 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 A.Y. 2018-19 vide order 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 a....
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....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." 8. Considering the facts of the instant case in the light of the decision of the coordinate 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." 10. Since the facts of the assessee's case are similar to one as decided by the co-ordinate Bench, we therefore, respectfully following the same hold that the notice issued u/s 143(2) of the Act is invalid notice and accordingly, 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....
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....नांक 16/11/2018 को 01:00 PM तक साक्ष्य प्रस्तुत करने अथवा साक्ष्य प्रस्तुत कराने का अवसर प्रदान किया जा रहा है जिस पर आप उक्त आयकर विवरणी के समर्थन में निर्भर हैं। रहेंगे। 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 न&....
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....7;िशेष प्रश्नावली (यों या अधियाचना (याँ को बाद में जारी किया जाएगा। 4. In course of assessment proceedings, if required, specific questionnaire(s) or requisition(s) for information/document shall be issued subsequently. 5. कृपया ध्यान दें कि यदि आपके पास ई-फाइलिंग खाता है तो आपके लिए पैरा 3 लागू है। आपके द्वारा स्वयं अपना खाता न बना लेê....
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....t, 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 authorities. In order to aid proper determination of the income of money lenders and banks, the Central Board of Direct Taxes issued a circular dated October 6, 1952, providing that where interest accruing on doubtful debts is credited to a suspense account, It need not be included in the assessee's taxable income, provided the Income-tax Officer is satisfied that recovery is practically improbable. Twenty-six years later, on June 20, 1978, in view of the judgment of the Kerala High Court In STATE BANK OF TRAVANCORE 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 s....
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....n internal communication of the CBDT issuing certain directions to the Department. 4. Similarly, on page 59 of the paper book, in the case of Srimanta Kumar Shit, Purba Medinapore vs A.C.I.T., Circle - 27(2), Haldia dt. 19.11.2024 in ITA No. 1911/KOL/2024, it is mentioned as, "submitted that revised format of issue of notice u/s 143(2) of the Act was provided by the CBDT vide F.NO.225/157/2017/ITA-II dated 23.06.2017. The said circular is enclosed at page 4-8 of paper book. On perusal of said Circular, it shall be evident that the Notice u/s 143(2) of the Act was to be issued as per three formats that are: " This also is not a Circular but only an internal communication of the CBDT to the Department. 5. Again, in the case of Tapas Kumar Das vs ITO, on page 70 it is mentioned as Circular F.NO.225/157/2017/ITA-II dated 23.06.2017 and whereas on page 72, it is mentioned as Instruction No. F. No. 225/402/2018/ITA.II dated 23.06.2017. 6. On page 77 in the case of Sajal Biswas vs ITO, the same is again mentioned as Instruction No. F. No. 225/402/2018/ITA.II dated 23.06.2017. 7. The CBDT issues various instructions and circulars....
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....arch related assessments proceedings, in other pending scrutiny assessment, cases shall be conducted only through the 'E-Proceeding' functionality in Income-tax Business Application (ITBA)/e-filing. 11. However, the Directorate of Systems had not updated the revised format of Notices u/s 143(2) in the relevant functionality of the ITBA module as on the date of issue of Notice u/s 143(2) on 27.09.2018 to the assessee. Therefore, the AO following the said Instruction of the CBDT had no alternative but to issue the notice u/s 143(2) only in the format that was available in the ITBA system on that date and the same was generated and issued to the assessee. 12. Several High Courts have considered the issue of assessments being completed without following prescribed procedure. The Hon'ble High Courts held that non-compliance is only a procedural irregularity and will not render the assessment ab initio void - Direction to ITO to redo assessment after following prescribed procedure is valid. ● G.R. Steel and Alloys P. Ltd,. Vs CIT(Kar) 152 ITR 220 ● Sarabjit Singh Vs CIT(Del) 234 ITR 641 ● V. Raju Vs CIT(Mad) 147 I....
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....t, if the assessee 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, i.e., the notice was (a) not served; or (b) not served in time; or (c) served in an improper manner. Thus, it is only the infirmities in the manner of service of notice that the Section seeks to cure. ● However, Section 292BB does not save, or is intended to cure, complete absence of notice. For applying this section, the notice must have emanated from the department. 17. In Grindlays Bank Ltd. vs CIT in 193 ITR 457 (Cal), the ITAT confirmed the CIT (A) finding that the notice u/s 143(2) was issued by the AO without jurisdiction as the ACIT Circle 30, Kolkata and not by the ITO Ward 37(3), Kolkata who completed the assessment, and that the department did not follow the internal administrative instruction issued by the CBDT. The jurisdictional Calcutta High Court held that "these provisions are really provisions of administrative convenience and it is not a case of inherent lack of jurisdiction and that in any event it is not one for adjudication by the court. Reference may be made in th....
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..../ PAN: AABCD7913K 27/09/2018 2017-18 H1443 3191944, 1961 ỆT URT 143(2) à , sgh- File Notice under section 143(2) of the Income-tax Act. 1961 Scrutiny (Computer Aided Scrutiny Selection) महोदय/महोदया/ मेसरà¥à¤¸, Sir/ Madam/ M/s. आपको सूचित किया जाता है कि निरà¥à¤§à¤¾à¤°à¤£ वरà¥à¤· 2017-18 के पावनी संखà¥à¤¯à¤¾ 295943301071117 के अनà¥à¤¸à¤¾à¤° आपके दà¥à¤µà¤¾à¤°à¤¾ दिनांक 07/11/2017 को दाखिल की गई आयकर विवरणी को संवीकà¥à¤·à¤¾ के लिठचà¥à¤¨à¤¾ गया है। This is for your kind information that the return of income fi....
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....ी। 'ई-कारà¥à¤¯à¤µà¤¾à¤¹à¥€' पर à¤à¤• संकà¥à¤·à¤¿à¤ªà¥à¤¤ नोट आपके संदरà¥à¤ के लिठसंलगà¥à¤¨ 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. निरà¥à¤§à¤¾à¤°à¤£ कारà¥à¤¯à¤µà¤¾à¤¹à¥€ के दौरान, यदि आवशà¥à¤¯à¤• होगा तो सूचना / दसà¥à¤¤à¤¾à¤µà¥‡à¤œ हेतॠविशेष पà¥à¤°à¤¶à¥à¤°à¤¾à¤µà¤²à¥€ (याà¤) या अ....
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....¤§à¥à¤¯à¤¾à¤¨ दें Note on 'E-Proceeding" 1. ई-गवरà¥à¤¨à¥‡à¤‚स पहल के à¤à¤• हिसà¥à¤¸à¥‡ के रूप में, इलेकà¥à¤Ÿà¥à¤°à¥‰à¤¨à¤¿à¤• कारà¥à¤¯à¤µà¤¾à¤¹à¥€ ने निरà¥à¤§à¤¾à¤°à¤£ कारà¥à¤¯à¤µà¤¾à¤¹à¥€ के संचालन की सà¥à¤µà¤¿à¤§à¤¾ के लिà¤, आयकर विà¤à¤¾à¤— ने ‘ई-कारà¥à¤¯à¤µà¤¾à¤¹à¥€' सà¥à¤µà¤¿à¤§à¤¾ विकसित की है। निरà¥à¤§à¤¾à¤°à¤£ कारà¥à¤¯à¤µà¤¾à¤¹à¥€ के संचालन के लिठआयकर कारà¥à¤¯à¤¾à¤²à¤¯ ....
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....¤²à¥€, आदेश इतà¥à¤¯à¤¾à¤¦à¤¿ का à¤à¤• निरà¥à¤¬à¤¾à¤§ पà¥à¤°à¤µà¤¾à¤¹ है। विà¤à¤¾à¤—ीय पतà¥à¤°à¤¾à¤šà¤¾à¤° पà¥à¤°à¤¾à¤ªà¥à¤¤ होने के पशà¥à¤šà¤¾à¤¤à¥ निरà¥à¤§à¤¾à¤°à¤¤à¥€ अपने संलगà¥à¤¨à¤•à¥‹à¤‚ के साथ, यदि कोई है, अपनी पà¥à¤°à¤¤à¤¿à¤•à¥à¤°à¤¿à¤¯à¤¾ ई- फाइलिंग पोरà¥à¤Ÿà¤² पर अपलोड कर सकेगा। निरà¥à¤§à¤¾à¤°à¤¿à¤¤à¥€ दà¥à¤µà¤¾à¤°à¤¾ दाखिल किया गया जवाब निरà¥à¤§à¤¾à¤°à....
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....¥Œà¤°à¤¾à¤¨ की गई सà¤à¥€ ई- सबमिशन (पà¥à¤°à¤¸à¥à¤¤à¥à¤¤) की समà¥à¤ªà¥‚रà¥à¤£ सूचनाà¤à¤‚ ई-फाईलिंग खाते में रख सकता है जो संदरà¥à¤ और रिकॉरà¥à¤¡ उदà¥à¤¦à¥‡à¤¶à¥à¤¯ के लिठबहà¥à¤¤ उपयोगी है। 3. In proceedings being carried out through the 'E-Proceeding' facility, assessee retains complete information of all e-submissions made during the course of assessment proceedings in his E-filing account which is very useful for reference & record purposes. 4. 'ई-कारà¥à¤¯à¤µà¤¾à¤¹à¥€' के तहत मामलों में, निमà¥à¤¨à¤²à¤¿à¤–िà¤....