TaxTMI 
TaxTMI 
2026 (9) TMI 585
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....diction by the JAO is improper and invalid as it is assumed in violation of CBDT Instruction No. 1 of 2011, assigning jurisdiction to the Assessing Officers based on monetary, pecuniary limitations. It ought to have considered the fact that the CBDT directions, instructions, circulars, etc., are binding on all the officers of the IT department and all the notice/orders issued contrary to such CBDT directions, instructions, circulars are invalid. 3. On the facts and in the circumstances of the case and in law the Ld. NFAC/CIT(A) has erred in not declaring the assessment order made by the ITO Ward-2, Khammam (JAO) u/s 143(3) r.w.s. 147 of the IT Act, 1961 as invalid and void ab initio as the same is made without issue and service of the mandatory notice u/s 143(2) of the Act. The NFAC/CIT(A) ought to have considered that notice u/ 143(2) of the Act neither been issued nor served either physically on the assessee appellant OR through ITBA portal as claimed in the Appellate Order. 4. On the facts and in the circumstances of the case and in law the Ld. NFAC/CIT(A) has erred in not properly considering and calculating the indexation cost of acquisition of the asset and ....
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....tted for adjudication in terms of Rule 11 of the Income Tax (Appellate Tribunal) Rules, 1963 owing to the fact that objections raised in additional grounds are legal in nature for which relevant facts are stated to be emanating from the existing records. 5. Under Additional Ground No. 2, the assessee has challenged the validity of the assessment order passed by the Ld. AO on the ground that the assessment proceedings ought to have been conducted through the faceless assessment mechanism in accordance with CBDT Circular No. 27/2019 dated 26.09.2019. The Ld. AR invited our attention to the said Circular placed at page no. 29 of the paper book and submitted that the Ld. AO conducted the assessment proceedings manually contrary to the directions contained in the aforesaid Circular. It was submitted that the Circular issued by the CBDT is binding upon the departmental authorities and, therefore, any assessment framed in contravention thereof is liable to be held invalid. Accordingly, it was prayed that the additional ground be admitted and the assessment order be quashed. 5.1 Per contra, the Ld. DR submitted that the issue sought to be raised by the assessee requires verification ....
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....an individual who filed his return of income for Assessment Year 2014-15 on 23.09.2014. From the information available with the Learned Assessing Officer ("Ld. AO"), it was noticed that during the year under consideration, the assessee had sold an immovable property for a consideration of Rs. 1,59,00,000/- vide registered sale deed dated 23.05.2013. However, no capital gain arising from such transfer was offered to tax in the return of income filed by the assessee. Accordingly, the case of the assessee was reopened under section 147 of the Income-tax Act, 1961 ("the Act") and notice under section 148 of the Act was issued by the Ld. AO on 29.03.2019. In response thereto, the assessee filed a return of income on 26.04.2019 declaring total income of Rs. 4,02,780/- besides agricultural income of Rs. 70,000/-. Even in the return filed pursuant to notice under section 148 of the Act, the assessee did not disclose any capital gain arising from the sale of the aforesaid immovable property. After considering the submissions of the assessee, the Ld. AO computed the long-term capital gain arising from the transfer of the property at Rs. 91,66,655/- and made the addition accordingly in the ha....
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....is based merely on suspicion and conjectures and is not supported by any documentary evidence whatsoever. It was contended that the assessee has failed to bring any material on record to demonstrate that the assessment order was actually passed after 31.12.2019. Accordingly, the Ld. DR prayed for dismissal of the additional ground raised by the assessee. 10. We have heard the rival submissions and perused the material available on record. The solitary allegation under additional ground no.1 of the assessee is that the assessment order, though dated 31.12.2019, was actually passed after the expiry of the limitation period and has been back-dated by the Ld. AO. We find that such a serious allegation must necessarily be supported by cogent and reliable evidence. We have gone through the assessment order placed on record. On page no. 1 of the assessment order, the date of the order is specifically mentioned as 31.12.2019. We have also examined the communication issued by the Ld. AO through the online portal on 31.12.2019 and find that the DIN relating to the assessment order was duly intimated to the assessee on the very same date, namely 31.12.2019. During the course of hearing, a ....
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....ontain any DIN, the same is liable to be quashed as being non-est in the eyes of law. 12. Per contra, the Ld. DR strongly supported the orders of the lower authorities. Inviting our attention to the intimation letter dated 31.12.2019 placed at page no. 25 of the paper book, he submitted that although the DIN was not mentioned in the body of the assessment order, the Ld. AO had separately intimated the DIN corresponding to the impugned assessment order to the assessee on 31.12.2019 itself, i.e., on the very same day on which the assessment order was passed. The Ld. DR further submitted that section 292BA has been inserted by the Finance Act, 2026 with retrospective effect from 1.10.2019. As per the said provision, no assessment, reassessment or other proceeding under the Act shall be deemed to be invalid merely on account of any mistake, defect or omission relating to quoting of a computer-generated DIN, provided such assessment order or proceeding is referenced by such number in any manner. He submitted that in the present case the DIN corresponding to the impugned assessment order was duly communicated to the assessee vide letter dated 31.12.2019 and, therefore, the assessment ....
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....r the statutory framework stood substantially complied with. So far as the reliance placed by the Ld. AR on CBDT Notification No. 19 of 2019 dated 14.08.2019 is concerned, we find that the subsequently inserted section 292BA of the Act, having been enacted with retrospective effect from 1.10.2019, specifically addresses and cures defects relating to quoting of DIN. Therefore, to the extent relevant to the facts of the present case, the statutory provisions contained in section 292BA of the Act override the consequences sought to be drawn from the aforesaid CBDT Notification. Once an issue is covered by any specific Section of the Act, then the effect of CBDT Notification on the same issue becomes ineffective. Accordingly, the reliance placed by the assessee on the said notification is misplaced and does not advance the case of the assessee. In view of the foregoing discussion, we do not find any merit in Additional Ground No. 3 raised by the assessee. Accordingly, the same is dismissed. 15. Under Ground No. 3 of the appeal, the assessee has challenged the validity of the assessment order passed by the Ld. AO on the ground that no notice under section 143(2) of the Income-tax Act....
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.... reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was- (a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner: Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment." 17.2 On a careful perusal of above, it is evident that the provisions contained in section 292BB of the Act clearly provide that where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice required to be served upon him has been duly served in time and in accordance with the provisions of the Act. The only exception is where the assessee has raised an objection before the completion of the assessment proceedings regarding nonservice, delayed service or improper s....
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....at there is no dispute about the fact that the assessee has transferred the immovable property through a valid registered sale deed. Therefore, the transaction is clearly covered within the meaning of "transfer" as defined under section 2(47) of the Act and consequently attracts the provisions of section 45 of the Act. The contention of the assessee that the sale deed was executed under coercion and that no consideration was actually received does not, by itself, negate the taxability of capital gain. During the course of hearing, a specific query was raised by the Bench to the Ld. AR as to whether the assessee had acknowledged receipt of consideration in the registered sale deed. In response, the Ld. AR fairly submitted that as per the recitals contained in the registered sale deed, the property had been transferred for a stated consideration. However, it was reiterated that no consideration was actually received by the assessee. In our considered view, once the assessee has admitted before the Registration Authority, which is a Government Authority, that the property has been transferred for a specified consideration, the subsequent plea that no consideration was received cannot ....
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....n accordance with provision of section 2(23C) of the Act, hereby directs as under: (i) In all cases (other than the cases covered under the 'e-Assessment scheme, 2019' notified by the Board), where assessment is to be framed under section 143(3) of the Act during the financial year 2019-20, it is hereby directed that such assessment proceedings shall be conducted electronically subject to exceptions in para below. Consequently, assessees are required to produce/cause to produce their response/evidence to any notice/communication/show-cause issued by the Assessing Officer electronically (unless specified otherwise) through their 'E-filing' account on the 'E-filing' portal. For smooth conduct of assessment proceedings through 'E-Proceeding', it is further directed that requisition of information in cases under 'E-Proceeding' should be sought after a careful scrutiny of case records. (ii) In following cases, where assessment is to be framed during the financial year 2019- 20, 'E-Proceeding' shall not be mandatory: a. Where assessment is to be framed under section(s) 153A, 153C and 144 of the Act. In respect of assess....
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....to Finance-Secretary/Revenue-Secretary 3. Chairman, CBDT & All Members, CBDT 4. All Pr. CCsIT/ Pr. DsGIT 5. ITCC Section 6. O/o Pr. DGIT(Systems) for uploading on official website 7. Addl. CIT (Database Cell) for uploading on irsofficerswebsite Shagaragem (Rajarajeswari R.) Under Secretary,(ITA.IT), CBDT Document 2 MIT ERER GOVERNMENT OF INDIA वितà¥à¤¤ मंतà¥à¤°à¤¾à¤²à¤¯/ MINISTRY OF FINANCE आयकर विà¤à¤¾à¤—/ INCOME TAX DEPARTMENT OFFICE OF THE INCOME TAX OFFICER WARD 2,KHAMMAM सेवा में/ To. MRUNALINI KALAGARA 11-4-63 KHAMMAM ,NEHRUNAGAR KHAMMAM 507001 . सà¥à¤¥à¤¾à¤¯à¥€ लेखा संखà¥à¤¯à¤¾/ PAN: AGUPK0964D निरà¥à¤§à¤¾à¤°à¤£ वरà¥à¤·/ AY: 2014-15 पà¥à¤°à¤ªà¤¤à¥à¤°à¤¾à¤• संखà¥à¤¯à¤¾ DIN & Document No .: 20141184493 दिनांक/ Dated: 31/12/2019 Intimation Letter for Order u/s 143 (3) r.w.s 147 of the Inc....