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2018 (8) TMI 644 - AT - Income TaxScrutiny/ regular assessment u/s 143(3) - validity of notice issued u/s 143(2) - Belated claim of refund with interest by making application u/s 119(1)(b)(c) - Estimation of income by applying GP rate - The assessee filed an application u/s 199(2)(b) of the Income-tax Act, 1961. The said application came to be decided on 17.01.2008. While disposing of that application, the Ld. CIT(A) directed the AO to determine the refund after scrutinizing the case by issue of notice u/s 143 of the Act, as per para 7 of Instruction No.13 dated 22.12.2006 issued by the Board. In pursuance of that order, a notice u/s 143(2) was issued to the assessee on 16.05.2008. The contention of the assessee is that the AO could not have issued the notice u/s 143(2) of the Act. Held that:- There is no ambiguity under the law that the scrutiny assessment is to be framed as per the provisions of Section 143 of the Income-tax Act, 1961. The Instruction No. 13/2006 would not override these provisions. AO has misconstrued direction of the ld. Commissioner of Income-tax and assessed the income by making scrutiny assessment. It is also noticed that there is an inordinate delay in disposing the application by the ld. Commissioner of Income-tax. Under these facts, we are constrained to hold that the impugned assessment order as framed by the AO is contrary to the provisions of law and beyond the jurisdiction of the AO. AO directed to allow refund with interest - Decided in favor of assessee.
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