TaxTMI 
TaxTMI 
2026 (6) TMI 206
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....(for short, "Act") dated 24.01.2025 arising out of assessment order passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act, dated 23.03.2023 for Assessment Year (A.Y.) 2018-19. ITA No. 178/Nag/2025 2. The solitary issue raised by the Revenue in the present appeal is whether the Ld. CIT(A) erred in setting aside the assessment order under section 251(1)(a) of the Act despite the fact that assessee having participated and responded during the assessment proceedings. 3. Facts of the case in brief are that assessee-company, engaged in the business of manufacturing Iron and Steel, filed its return of income for A.Y. 2018-19 declaring NIL income on 23.10.2018. Return was processed u/s. 143(1) of the Act. Based on the information available wit....
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....epresentative (DR) supported the assessment order and submitted that assessee had duly participated in the assessment proceedings from time to time by furnishing replies/details in response to the statutory notices issued by the Ld. AO. It was contended that once the assessee had participated in the proceedings without raising any objection at the relevant stage, the assessment could not have been set aside by the Ld. CIT(A) on mere technical considerations. Ld. DR further submitted that assessment order was passed after providing sufficient opportunities to the assessee and after considering the material available on record. It was argued that the powers under section 251(1)(a) of the Act were not intended to annul or set aside a valid ass....
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....dences before the Ld. CIT(A) such as ledger accounts, tax invoices, gate passes, weighment slips, audited financial statements, tax audit report, bank statements and return of income acknowledgment in support of genuineness of sales transactions. Upon examination of these evidences, Ld. CIT(A), in exercise of powers conferred under section 251(1)(a) of the Act w.e.f. 01.10.2024, restored the matter to the file of Ld. AO for denovo adjudication. We find no infirmity in the approach adopted by the Ld. CIT(A). The assessment admittedly came to be completed ex parte u/s.144 of the Act without examining the supporting evidences relating to the impugned transactions which were placed before him. The addition made by the Ld. AO pertains to the ent....
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....d any iota of merit in the grounds raised by the Revenue. In sequitur, the order of the Ld. CIT(A) is upheld and the grounds raised by the Revenue are dismissed. C.O. No. 02/Nag/2025 8. In this cross objection, assessee has raised a solitary ground that Ld. CIT(A) has not dealt with the legal issue of challenging the notice u/s 148 of the Act and the consequent assessment pursuant thereto. Learned counsel for the assessee submitted that return of income was filed on 23.10.2018. He further adverted that return of income, in response to notice u/s. 148 was also furnished on 09.03.2023, but Ld. AO without issuing 143(2) notice proceeded to complete the assessment. It was adverted that the law is well settled that issue of notice u/s. 143....
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....e impact of Section 292BB of the Act. 9. According to Section 292BB of the Act, 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. 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. It is only the infirmities in the manner of service of notice that the Section seeks to cure. The Section is not intended to cure complete absence of notice....