9911796707
Advanced Search 
TMI Blog2012 (5) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... legal issue raised by assessee in this appeal is against the order of CIT(A) in upholding the selection of his case under scrutiny against norms set out vide CBDT Instruction no.9/2004 dated 18.10.2004. For this, assessee has raised following three effective grounds i.e. ground nos. 1, 2 and 3: "1. That the Ld. AO has selected the case under scrutiny as per vide para 3 of CBDT Instruction No. 9/2004 on 18th Oct., 2004 which is against the Law. 2. That the Ld. CIT(A) has passed the order ignoring the fact which is mention in the order sheet. That the notice is issued on 18.10.2004, which is against the law. 3. That the Ld. CIT(A) passed the order without considering the Instruction No.9/2004 issued by CBDT which binding on revenue auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing procedure for selection of returns/cases of Corporate Assessees for Scrutiny during the current financial year i.e. 2004-05. The following categories of cases shall be compulsorily scrutinized: Xxx xxx xxx Xxx xxx xxx Assessee's case falls under the following paras: Cases not falling in the above categories and where the Assessing Officer is of the opinion that scrutiny is required for specific reasons, viz., cases of builders/contractors following project completion method to declare their income, cases where there is prima facie evidence of dividend/bonus stripping, etc. may be selected for scrutiny after recording the reasons in writing and with prior approval of CCIT concerned. The process of selection of cases for scru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiny of returns filed up to 31.03.2004, in the case of corporate assessees must be completed by 15.10.2004. Admittedly, this instruction is issued by CBDT vide Instruction No. 9/2004 dated 20.09.2004. As per order sheet entry dated 18.10.2004, the notice was issued on 18.10.2004 u/s. 143(2) of the Act which is beyond the prescribed time as per Instruction No. 9/2004 dated 20.09.2004. As per order sheet entry dated 18.10.2004 the notice was issued on 18.10.2004 u/s. 143(2) of the Act which is beyond the prescribed time as per Instruction No. 9/2004 dated 20.09.2004. We find that the CIT(A) has noted that the violation of Instruction, Circular or Notification is an administrative matter for which administrative action can be taken against off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October, 2004 whereby it means that the case was selected for scrutiny before 15th October, 2004 as required vide the instruction no. 9/2004 on 20th September, 2004. It is only the entry in the order sheet which was done on 18th October, 2004; there is a possibility that instead of "issued" notice the assessing officer may have written "issue" notice, it appears to be a mistake while writing the order-sheet. It is also not clear whether the order- sheet had been written by the Assessing Officer himself or was put up before him to be signed by his staff. During the selection of the cases large numbers of notices are issued at the fag end of the limitation period. Some times the cases are selected through CASS only 2-3 days prior to the limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable in the present case also and quash the selection of scrutiny and completion of assessment by holding as invalid. Hon'ble Chattishgarh High Court in Sunita Finlease Ltd.'s case (supra) has considered section 119 of the Act by stating that Section 119 of the Act, empowers the Central Board of Direct Taxes to issue orders, instructions or directions for the proper administration of the Act or for such other purposes specified in sub-section (2) of the section. Hon'ble High Court further held that such an order, instruction or direction cannot override the provisions of the Act. Direction by issuing instructions to the officers for the process of selection of cases for scrutiny for returns for a particular financial year and allowing tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, by issuing circulars in exercise of its statutory powers under section 119 of the Income-tax Act, which are binding on the authorities in the administration of the Act. Under section 119(2) (a), however, the circulars as contemplated therein cannot be adverse to the assessee. Thus, the authority which wields the power for its own advantage under the Act is given the right to forgo the advantage when required to wield it in a manner it considers just by relaxing the rigour of the law or in other permissible manners as laid down in section 119. The power is given for the purpose of just, proper and efficient management of the work of assessment and in public interest. It is a beneficial power given to the Board for proper administration ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
