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2022 (6) TMI 242 - HC - Income TaxAssessment u/s 144A - Power of Joint Commissioner to issue directions in certain cases - Expenditure incurred towards procurement of raw materials - Addition under either section 40A(2) or Section 37 of the Income Tax Act - HELD THAT:- Section 144-A does not empower to the Joint Commissioner to give a direction to an Assessing Officer to complete the assessment in a particular manner. Directions to be exercised by the Joint Commissioner under Section 144(A) is merely intended to guide the Assessing Officer to complete the assessment and only such directions are binding on an Assessing Officer. Since directions contained in the impugned order passed by the Joint Commissioner was prejudicial to the petitioner and to complete the assessment in a particular manner, petitioner should have been called for hearing by the second respondent Joint Commissioner. As there is a violation of Section 144(A) of the Income Tax Act, 1961, the consequential the Assessment Order dated 27.12.2018 passed by the first respondent also has to go. It would have different, if the 1st respondent independently had decided to proceed with the proposal in the Show Cause Notice. Therefore, the impugned direction of the second respondent impugned in W.P is hereby quashed. However, there is no necessity to remit the cases back to the second respondent to re-do exercise under Section 144 A of the Income tax Act, 1961.
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