9911796707
TMI Blog2023 (4) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... re being taken from ITA No. 140 of 2013. Appellant-revenue has come up in appeal against the order dated 02.11.2012 passed by the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi in ITA No. 3630/Del/2009 dated 02.11.2012, for the assessment year 2006-07. Brief facts of the case are that the respondent-assessee filed the return of income on 28.11.2006 declaring income at Rs. 3,97,17,920/-. The case was selected for scrutiny. Assessment under Section 144 of the Income Tax Act was completed on 24.12.2008 by making the following additions:- "(1) During the assessment proceedings, the identity and creditworthiness of the parties subscribed share capital remained unproved and the genuineness of the transaction was also unproved, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the person travelled, sector travelled, parties contracted and business procured was available on record. (9) An addition of Rs. 1,64,890/- was made as no evidence on record regarding the Subscription & Membership fees paid to the institution/organizations eligible for deduction under Section 80-G. (10) The assessee-company had claimed total expenses of Rs. 1,97,72,54,772/- under different heads in the P & L Account. No details were furnished by the assessee to prove the genuineness of these expenses. Moreover, the expenses under various heads were allowable only when TDS was deducted and deposited in the Government account. Since no information was furnished by the assessee nor any evidence is available on record to substantiate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T for selection of cases for scrutiny for the financial year 2007-08 are not shown to have been satisfied for assumption of jurisdiction, whereas the case of assessee was rightly picked up for scrutiny as per guidelines contained in CBDT instruction for selection of cases for scrutiny? (ii) Whether Hon'ble ITAT, New Delhi was right in law in quashing the notice as well as assessment made as the assessment for the assessment year 2004-05 was framed by making disallowance of Rs. 5,60,207/- and the appeal of the assessee was pending before CIT (A) and as per the CBDT instructions contained in Scrutiny Guidelines for F.Y. 2007-08 in clause 2 (v) (b) provided that all cases in which an appeal was pending before the CIT (A) against an addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the CBDT under Section 119 (1) of the Income Tax Act, 1961 was examined. It was held that the CBDT, under the above said provisions, from time to time, could issue such orders, instructions and directions to other IT authorities as it may deem fit for the proper administration of the Act and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board. The power is given to the Board for the purpose of proper and efficient management of the work of assessment. It is a beneficial power given to the Board for proper administration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r completing the project in the assessment year 1996-97, the assessee, after into consideration the profit offered in the assessment year 1993-94 and 1994-95, offered the balance profit for taxation in the assessment year 1996- 97. The Assessing Officer rejected the books of account maintained by the assessee and referred the matter to the Departmental valuation cell for ascertaining the cost of the construction. The valuation cell determined the value of the property at Rs. 2,02,15,924/- as against the declared value of Rs. 1,43,74,515/-. The Assessing Officer, after making adjustments to the valuation report, completed the assessment under Section 143 (3) of the Income Tax Act by making an addition of Rs. 55,93,115/- being the difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yond the period of three months. It was held that instructions of CBDT were violated, as the circulars were binding upon the department. The Department was bound by that standard and could not act with discrimination. Finally, the appeal was allowed. In the facts of the present case, the Tribunal has followed the guidelines issued by Hon'ble the Supreme Court as stated above 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. Hence, the Tribunal has rightly observed that it cannot be held that the appellant had acquiesced to the jurisdiction. As per CBDT instructions, the burden ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
