TaxTMI 
TaxTMI 
2026 (1) TMI 1600
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....rescribed by the CBDT. It was the submission that on this ground also the notice u/s. 143(2) of the Act is liable to be quashed. Ld. AR relied upon the decision of the coordinate bench of the Tribunal in the case of M/s Durga Automotives Pvt. Ltd. Vs. DCIT, passed in ITA No.675/Kol/2024, vide order dated 22.04.2025, wherein the coordinate bench of the Tribunal in para 6 to 12 has held as follows :- 6. It was submitted by the Ld. AR that the format of the 143(2) notice has been provided by the CBDT along with a note on e- proceeding which are as follows: 'ई-कार्यवाही' पर ध्यान दें Note on E-Proceedings 1. ई-गवर्नेंस पहल के एक हिस्से के रूप में, इलेक्ट्रॉनिक कार्यवाही ने निर्धार....
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....anner, through electronic means, without the necessity to visit Income-tax Office for conduct of assessment proceedings. This new facility is also environment friendly as assessment proceedings have now become paperless. 2. 'ई-कार्यवाही' कार्यक्षमता के माध्यम से निर्धारण कार्यवाही में, निर्धारिती के ई- फाइलिंग खाते में निर्धारण अधिकारी से पत्र, नोटिस, प्रश्नावली, आदेश इत्यादि का एक निर....
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....नक सुविधा प्रदान करती है। 2. In assessment proceedings through the 'E-Proceeding' functionality, there is a seamless flow of letters, notices, questionnaires, orders etc. from Assessing Officer to assessees' E-filing account. On receipt of Departmental communication, assessee is able to submit his response along with attachments, if any, by uploading the same on the E-filing portal. The response submitted by the assessee is also viewed by the Assessing Officer electronically. Thus, besides saving precious time of the taxpayer, E-Proceeding' also provides a 24X7 anytime/anywhere convenient facility to submit response to the Departmental queries in course of assessment proceedings. 3. 'ई-कार्यवाही' सुविधा के माध्यम से की गई कार्यवाही के अन्तर्....
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....6;्रावधान, 1961 लागू किया गया है; या iii. जहां गवाह से पूछताछ निर्धारिती और निर्धारण अधिकारी द्वारा की जाती है; या iv जहां किसी भी प्रतिकूल दृश्य पर विचार करने वाला एक कारण बताओ नोटिस जारी किया जाता है और मामले की व्यì....
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....ot yet have an E-filing account, are requested to get themselves registered by following the simple instructions contained in (www.incometaxindiaefiling.gov.in) for having an E-filing account. (In case the document is digitally signed please refer Digital Signature at the bottom of the page) F. No. 225/157/2017/ITA.II Government of India Ministry of Finance Department of Revenue (CBDT) North Block, New Delhi, dated the 23rd of June, 2017 To All Pr. CCsIT/Pr. CCIT(International-tax)/CCIT(Exemptions)/Pr. DsGIT Sir/Madam Subject: - Issue of notices under section 143(2) of Income-tax Act, 1961 in revised format-regd .- With reference to the above, I am directed to state that Central Board of Direct Taxes has decided to modify format of notice(s) issued under section 143(2) of the Income-tax Act which intimate the concerned assessee about selection of his/her case for scrutiny. This has become necessary in view of Board's decision to utilise 'E-Proceeding' facility for electronic conduct of assessment proceedings in a widespread manner from this financial year. 2....
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....) 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) (Designation) (Telephone No./Fax No.) (E-mail ID) Complete Scrutiny (Computer Aided Scrutiny Selection) Notice under Section 143(2) of the Income-tax Act. 1961 PAN No: ............. Dated: ......... To Sir/Madam This is for your kind information that the return of income for Assessment Year ............. filed vide ack. no ............ no .......... has been selected for Complete Scrutiny. 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 throug....
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....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) (Designation) (Telephone No./Fax No.) (E-mail ID) 7. It was a submission that as the notice issued u/s. 143(2) in the case of the assessee which has been extracted above is not in conformity with the notice issued u/s. 143(2) as prescribed in the e- proceeding format. The notice u/s. 14392) is liable to be quashed. It was the submission that consequently the assessment order is also liable to be set aside. The Ld. AR placed reliance on the decision of the Coordinate Bench of this Tribunal in the case of Sajal Biswas Vs. ITO, ITA No. 1244/Kol/2023 dated 26.03.2025 wherein in para 9 and 10 the coordinate bench of this Tribunal has held as under: 09. After ....
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....केअनुसारआपकेद्वारादिनांक 30/10/2017 कोदाखिलकीगईआयकरविवरणीकोसंवीक्षाके लिए चुनागयाहै। This is for your kind information that the return of income filed by you for assessment year 2017-18 vide ack, no. 269322761301017 on 30/10/2017 has been selected for Scrutiny. 2. इससंबंधमें, आपकोदिनीक 16/11/2018 को 01:00 PM तकसाक्ष्यप्रस्तुतकरनेअथवासाक्ष्यप्रस्तुतकरानेक....
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....ecified 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. निर्धारणकार्यवाहीकेदौरान, यदिआवश्यकहोगातोसूचना / दस्तावेजहेतुविशेषप्रश्नावली (यों) याअधियाचना (याँ) कोबादमेंजारीकियाजाएगा। 4. In course of assessment proceedings, if required, specific qu....
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....ed 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 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. 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 authorities. In ....
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....tice 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 संवीक्षा चयन Scrutiny (Computer Alded Scrutiny Selection) महोदय/महोदया। भेसर्स, Sir/Madam/ M/s, आपको सूचित किया जाता है कि निर्धारण वर्ष 2017-18 के पाव&#....
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....5;क्ट्रॉनिक रूप में Incometaxindiaefiling.gov.in पर अपने ई-फाइलिंग खाता द्वारा प्रस्तुत किया जाना है। बाद की निर्धारण कार्यवाही भी आयकर विभाग की 'ई-कार्यवाही' सुविधा द्वारा की जायेगी। 'ई-कार्यबाही' पर एक संक्षिप्त नोट आपके संदर्&#....
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.... ई-मे 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" 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 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 and find that the same is not as per the format of CBDT Instruction F.No. 225/157/2017/....
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....re 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 order is also liable to be quashed. 10. In reply, the ld. Sr. DR vehemently supported the orders of the lower authorities. He has further filed a note in regard to the issue of notice u/s. 143(2) as follows: Date: 22.04.2025 To, The Hon'ble Members C Bench ITAT Kolkata 225 AJC Bose Road, Kolkata Respected Sirs, Sub: Durga Automotives Pvt. Ltd. in ITA-675/Kol/2014; AY 2017-18 1. CBDT vide its internal....
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....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 are directed specifically to the Income Tax Department and may not be intended for public dissemination. 2. While still important for departmental functioning, internal communications do not usually carry the same legal or authoritative weight as formal instructions. 8. In summary, internal communications are meant specifically for officers to facilitate their work and ensure....
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....ent 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 an opportunity of being heard was not given to the assessee, will not invalidate an assessment order or an addition made therein - It is only a procedural lapse. 15. 292BB. Notice deemed to be valid in certain circumstances. - Where an assessee has appeared in any proceeding or co-operated in any ....
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....under (p. 45). : "These provisions clearly indicate that the matter is more one of administrative convenience than of jurisdiction and that in any event it is not one for adjudication by the court. " This passage was quoted with approval by the Supreme Court in the case of Pannalal Binjraj v. Union of India [1957] 31 ITR 565 (SC) and also in the case of Rai Bahadur Seth Teomal v. CIT [1959] 36 ITR 9 (SC)." Based on the submission made as above, it is prayed that the assessee's additional ground of appeal may be dismissed and justice may be rendered. Yours respectfully Sallong Yaden Sr. DR, ITAT, Kolkata 11. It was the submission that the order of the Ld. CIT(A) is liable to be upheld. 12. We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the notice u/s. 143(2) is admittedly not in the format as provided under the note on e- assessment proceeding. In these circumstances, respectfully following the decisions of the coordinate bench of this tribunal cited supra, the notice issued u/s. 143(2) dated 27.09.2018 in the case of the assessee is held to be invalid and the same stan....
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.... 2. इस संबंध में, आपकों दिनांक 08/110/2018 को 12:30 PM तक साकà¥à¤·à¥à¤¯ पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ करने अथवा साकà¥à¤·à¥à¤¯ पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ कराने का अवसर पà¥à¤°à¤¦à¤¾à¤¨ किया जा रहा है जिस पर आप उकà¥à¤¤ आयकर बिबरणी के समरà¥à¤¥à¤¨ में निरà¥à¤à¤° हैरहेंगे। 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 sald return of Income by 08/10/2018 at 12:30 PM. अपने ई-फाईलिंà....