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TMI Blog2025 (5) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny and statutory notices were duly issued along with questionnaire and served upon the assessee. During the course of assessment proceedings, the ld. AO noticed that the assessee has offered total license fees of Rs. 2,37,32,969/- from various shop keepers/ showroom owners to whom these premises were licensed in shopping complex cum mall, under the head income from house property and claimed standard deduction at the rate of 30% of Rs. 70,08,214/-. According to the ld. AO the said income should be assessed under the head income from business or profession instead of house property on the ground that assessee's business activity is tenancy/ logistic of godown/warehouse. The AO while doing so disregarded the fact that in all the proceeding of assessment years, the income has been accepted as income from house property and statutory deduction of 30% was allowed towards statutory allowance. 05. The ld. CIT (A) in the appellate proceedings, affirmed the order of the ld. Assessing Officer 06. After hearing the rival contentions and perusing the materials available on record, we find that assessee has been receiving the license fees from various shop owners to whom the premises we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as wrong in issuing notice u/s. 143(2) on 09.08.2018 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 Provisions of Act. 3. For that the appellate reserves the right to adduce any further ground or grounds, if necessary, at or before the hearing of the appeal." 09. The ld. Counsel for the assessee submitted that the said ground is purely a legal issue and the assessee is within its legal right to raise the same before any of the appellate authority at any stage whatsoever. The ld. Counsel for the assessee submitted that the notice u/s 143(2) of the Act has been issued in an invalid format in violation to the CBDT instruction no. F. No. 225/157/2017/ITA-II Dated 23-06-2017 and accordingly, the assessment order passed consequently is void ab initio, ultra virus and nullity in the eyes of law. The ld. Counsel for the assessee submitted that since the issue raised is legal issue which goes to the root of the assessment and since no further verification of facts is required to be done from any quarter whatsoever, the legal ground raised by the assessee may kindly be admitted for adjudication. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 143(2) of the Act as invalid. Therefore, additional ground raised by the assessee may kindly be dismissed. 014. After hearing the rival contentions and perusing the materials available on record, we find that undisputedly the notice issued u/s 143(2) of the Act dated 09.08.2018, specifies only computer aided scrutiny selection which neither mentioned it either to be a limited or a complete scrutiny nor compulsory manual scrutiny. Thus, the said notice has been issued in violation of the instruction issued by CBDT as noted above. In our opinion, the revenue authorities have to follow the instruction issued by CBDT and violation thereto would certainly render the notice as invalid with the result all the consequential proceeding would also be invalid. The case of the assessee find support from the decision of the co-ordinate Bench in the case of Tapas Kumar Das Vs. ITO (supra), wherein a similar issue has been decided in favour of the assessee. The operative part of the same is extracted below:- "6. After hearing the rival contentions and perusing the materials available on record, we find that particularly the notice was issued u/s 143(2) of the Act, a copy of which is availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #2351; प्रस्तुत कराने का अवसर प्रदान किया जा रहा है जिस पर आप उक्त आयकर विवरणी के समर्थन में निर्भर हैं। रहेंगे। 2. In this regard, an opportunity is being given to you to produce or cause to produce any evidence on which you may like to rely in support of the said return of income by 16/11/2018 at 01:00 PM. 3. उपर्युक्त निर्दिष्ट प्रमाण / सूचना को आपको ऑनलाइन माध्यम से इलí ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68; किया जाएगा। 4. In course of assessment proceedings, if required, specific questionnaire(s) or requisition(s) for information/document shall be issued subsequently. 5. कृपया ध्यान दें कि यदि आपके पास ई-फाइलिंग खाता है तो आपके लिए पैरा 3 लागू है। आपके द्वारा स्वयं अपना खाता न बना लेने तक निर्धारण कार्यवाही आपके द्वारा वर्णित की गई ई-मे is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 suspense account, It need not be included in the assessee's taxable income, provided the Income-tax Officer is satisfied that recovery is practically improbable. Twenty-six years later, on June 20, 1978, in view of the judgment of the Kerala High Court In STATE BANK OF TRAVANCORE v. CIT [1977] 110 ITR 336, the Board by another circular, withdrew with immediate effect the earlier circular. However, by circular dated October 9, 1984, the Board decided that Interest in respect of doubtful debts credited to suspense account by banking companies would be subjected to tax but Interest charged in an account where there has been no recovery for three consecutive accounting years would not be subjected to tax in the fourth year and onwards. The circular also stated that if there is any recovery in the fourth year or later, the actual amount recovered only wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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