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TMI Blog2019 (9) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... sh payments disallowed under section 40A (3) of the Act. 1.1 That in doing so, the learned Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the said disallowance made by learned AO was outside the scope limited scrutiny and as such, the disallowances needed to be deleted on this ground alone. 1.2 That the learned Commissioner of Income Tax (Appeals), has further failed to appreciate the fact that the said cash payments were made at the insistence of farmers and was also governed by business/ commercial expediency and thus, was covered by the conditions as envisaged in Rule 6DD of the Income Tax Rules and as such, no disallowances was warranted on the facts of the case. 1.3 That further, the learned Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of National Thermal Power Co. Ltd. (NTPC) Vs. CIT reported in 229 ITR 383. 5. The Ld. Sr. DR opposed the admission of the additional ground and submitted that the assessee neither raised this ground before the A.O. or the Ld.CIT(A) therefore it may not be admitted at this stage. 6. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is not in dispute that the additional ground raised by the assessee at this stage is purely a legal ground and the relevant material is available on the record, so it deserves to be admitted as per the ratio laid down by the Hon'ble Apex Court in the case of NTPC Vs. CIT (Supra) wherein it has been h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. 9. Now the assessee is in appeal. 10. Ld. Counsel for the assessee submitted that return for the year under consideration was filed by the Assessee on 14/09/2015, my attention was drawn towards page no. 27 of the assessee's compilation which is the copy of acknowledgment of filing Income Tax Return. It was further submitted that in the said return the assessee had given the address as under: "39 West, Near Maloya, Sector 122, Mohali, Punjab" 10.1 It was further submitted that for the earlier Assessment Year i.e; 2013-14 and 2014- 15 the returns of income showing the same address were filed on 19/09/2013 and 17/09/2014 respectively, for the aforesaid contention my attention was drawn towards page no. 25 & 26 of the assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness and mismatch of the payments to related persons, therefore the addition made by invoking the provision of Section 40A(3) of the Act was beyond the scope of limited scrutiny. The reliance was placed on the following case laws: * VMT Spinning Co. Ltd. Vs. CIT And Another (2016) 389 ITR 326 (P&H) * ACIT And Another Vs. Hotel Blue Moon (2010) 321 ITR 362 (SC) * CIT Vs. Norton Motors (2005)275 ITR 595 (P&H) 11. In her rival submissions the Ld. Sr. DR strongly supported the orders of the authorities below and further submitted that the notice issued under section 143(2) of the Act dt. 22/05/2017 was in continuation of the proceedings initiated by the ACIT, Amritsar by issuing the notice under section 143(2) of the Act on 12/08/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return: Provided that no notice under this sub-section shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished. From the proviso to sub section 2 of Section 143 of the Act, it is clear that no notice under section 143(2) of the Act shall be served on the assessee after the expiry of six months from the end of the Financial Year in which the return was furnished. In the present case the assessee filed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an action taken by the competent authority, provided that such return of income, assessment, notice, summons or other proceeding in substance and effect is in conformity with or according to the provisions of the Act. To put it differently, section 292B can be relied upon for resisting a challenge to the notice, etc., only if there is a technical defect or omission in it. However, there is nothing in the plain language of that section from which it can be inferred that the same can be relied upon for curing a jurisdictional defect in the assessment notice, summons or other proceeding. In other words, if the notice, summons or other proceeding taken by an authority suffers from an inherent lacuna affecting his / its jurisdiction, the same c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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