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2023 (4) TMI 817 - HC - Income TaxScrutiny assessment - Instructions issued by CBDT for selection of case for scrutiny not complied with - Assessment u/s 144 completed making the additions - Hon’ble ITAT quashing the notice as well as assessment made in the case of the assessee by holding that instructions issued by CBDT for selection of cases for scrutiny for the financial year 2007-08 are not shown to have been satisfied for assumption of jurisdiction - HELD THAT:- Tribunal has followed the guidelines issued by Hon’ble the Supreme Court UCO BANK, TAMIL NADU INDUSTRIAL INVESTMENT CORPORATION LTD. [1999 (5) TMI 3 - SUPREME COURT] and has observed that with respect to the notice dated 27.11.2007. The appellant submitted reply on 18.01.2008 and had taken up the issue with regard to jurisdiction of the assessing authority to issue such notice. Tribunal has rightly observed that it cannot be held that the appellant had acquiesced to the jurisdiction. As per CBDT instructions, the burden was on the authority assuming jurisdiction to show and establish that such instructions have been duly complied and satisfied in letter and spirit. Since notice under Section 143 (2) of the Act was not in terms of the instructions of the CBDT, both the notice and the assessment framed were held to be without valid jurisdiction and were accordingly, quashed. Since, in the present case, the question of jurisdiction was to be decided first by the Assessing Officer, which has not been done, the assessment order was quashed being against the instructions of the CBDT. After going through the impugned judgment(s), this Court is of the view that the in this case, the instructions issued by the CBDT have not been complied with in letter and spirit. Tribunal has rightly allowed the appeal(s) of the assessee by appreciating the facts in the right perspective.
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