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2012 (12) TMI 67 - AT - Income TaxValidity of Notice issued u/s 143(2) - selection of cases of corporate assesses for scrutiny - held that:- No disallowance of Rs. 5 lacs or more and in any case no finding is available from the order of the authorities below that an identical issue had arisen in the year under consideration. Moreover, it is also seen that each of the disallowances made in A.Y. 2004-05 were lump sum disallowances, which cannot be said to be arising in the succeeding year. since notice issued was not in terms of the instructions issued by the CBDT, proceedings are invalid. - judgment of Hon’ble Andhra Pradesh High Court in the case of CIT Vs. Smt. Nayana P. Dedhia [2004 (8) TMI 99 - ANDHRA PRADESH HIGH COURT] relied upon. Further, Once the CBDT has issued instructions for assumption of jurisdiction for selection of cases of corporate assesses for scrutiny and assessment thereof, the same have to be followed in letter and spirit by the AO. The burden lies on the authority assuming jurisdiction to show and establish that such instructions have duly been complied and satisfied in letter and spirit. However, in the instant case, for the reasons stated above, instructions issued by the CBDT are not shown to have been satisfied for assumption of jurisdiction. Thus, we are in agreement with the contention raised by the appellant that notice issued u/s 143(2) of the Act for assumption of jurisdiction was not in terms of the instructions of the CBDT - Hence, both the notice and the assessment framed are held to be without valid jurisdiction and stand quashed as such - notice as well the as assessment is quashed, we do not consider it necessary to render any decision on merits of the other grounds raised in both these appeals, as the necessary consequence thereof shall follow in the light of judgment rendered by the Hon’ble Calcutta High Court in the case of Rawatmal Harakchand Vs. CIT [1978 (3) TMI 10 - CALCUTTA HIGH COURT] - In the result, assessee’s appeal stands allowed and that of the department is dismissed.
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