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TMI Blog2024 (11) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... 20th April, 2024, passed by the Income Tax Officer, national e-assessment center (Ld. AO) under section 143(3) read with section 144B of the Income Tax Act, 1961 (the Act) computing the total income of the Assessee as Rs. 57,38,240/-, was dismissed. 2. Besides the grounds raised in the memorandum of appeals, the assessee has also raised additional grounds before us which are reproduced hereunder: "1. That the ld. AO erred in issuing notice u/s 143(2) of the Act dated 09.08.2017 without complying to the CBDT Instruction F. NO. 225/157/2017/ITA-II dated 23-06-2017 and so the notice issued u/s 143(2) is not valid as per law. 2. That the assessment order u/s 143(2) passed 30.12.2019 provides that the return was selected for limited scruti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessee vehemently submitted that the notice issued u/s 143(2) of the Act dated 9.08.2017 was not in consonance with CBDT Circular no. F. No. 225/157/2017/ITA-II dated 23.06.2017 and therefore, the same is invalid and assessment based on the said notice is also invalid. The ld. Counsel for the assessee referring to the said circular of the CBDT, copy of which is filed at Paper Book page no. 56 to 61, submitted that the said circular mandates that the notice u/s 143(2) of the Act, has to be issued in either of the three format; (i) Limited Scrutiny (Computer Aided Scrutiny Selection) (ii) Complete Scrutiny (computer Aided Scrutiny Selection) (iii) compulsory manual Scrutiny. 6. The ld. Authorised Representative vehemently contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er administration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Similarly, the ld. Counsel for the assessee relied on the decision of Calcutta High Court in the case of Amal Kumar Ghosh vs. ACIT and Ors. (2014) 361 ITR 458 (Cal), wherein the Hon'ble Court held that circulars issued by CBDT u/s 119 of the Act are binding upon the department. The ld. Authorised Representative, further prayed that the notice issued u/s 143(2) of the Act may kindly be held as invalid and the assessment framed by the ld. AO may kindly be quashed. 8. Arguing on the second limb of his augment, the ld. Authorised Representative submitted that the case of the assessee was selected for limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of creditors of Rs.38,74,380/-. The ld. Authorised Representative further submitted that the order passed by the ld. AO was kindly be quashed as being invalid for the reason that he exceeded his jurisdiction. 9. The ld. DR relied on the orders of the authorities below by submitting that so far as the first issue is concerned of not issuing notice u/s 143(2) in either of the formats as provided in CBDT Circular No. F. No. 225/157/2017/ITA-II dated 23.06.2017, is not in hand of the ld. AO as these notices were computer generated and the ld. AO has no authority to modify the contents of these notices. Therefore, the plea raised by the ld. Counsel for the assessee may kindly dismissed. On the second issue also, the ld. DR submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adverse to the assessee. 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 of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Hard cases Which can be properly categorized as belonging to a class, can thus be given the benefit of relaxation of law by Issuing circulars binding on the taxing authorities. In order to aid proper determination of the income of money lenders and banks, the Central Board of Direct Taxes issued a circular dated October 6, 1952, providing that where interest accruing on doubtful debts is credited to a sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning, it was not open to the Tribunal to come to a finding that the Department acted within the four corners of Circulars Nos. 9 and 10 Issued by the Central Board of Direct Taxes The circulars were evidently violated. The circulars were binding upon the Department under section 119." 12. Therefore case of the assessee is therefore squarely covered by the ratio laid down in the above decisions and respectfully following the same, we are inclined to hold the assessment as invalid being based on the invalid issue of notice u/s 143(2) of the Act. The first additional ground raised by the assessee is allowed. 13. Since we have held the notice issued u/s 143(2) as invalid and so the consequential assessment framed, we are not adjudicating seco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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