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Issues Involved:
The judgment involves the issue of the validity of a notice issued u/s 158BD of the Income Tax Act, 1961, for the block period from 01-04-1996 to 21-01-2003. Assessee's Cross Objection (CO): The CO filed by the assessee raised the issue of the validity of the notice issued u/s 158BD of the Act, contending that it was vague and lacked the requisite satisfaction by the Assessing Officer (AO). The AR of the assessee argued that this additional ground should be admitted based on legal grounds, citing the judgment of the Hon'ble apex court in the case of National Thermal Power Corporation v. CIT (1998) 229 ITR 383 (SC). The Revenue's DR raised objections, but the Tribunal admitted the ground as it was convinced of its legal nature and cited relevant judicial pronouncements. The AR of the assessee further argued that the notice issued in the present case was similar to a previous case where the assessment was quashed due to non-application of mind by the AO and lack of visible satisfaction in the notice. The Tribunal examined the contents of the notice and found it identical to previous cases where assessments were quashed, leading to the decision to quash the block assessment order and allow the additional ground of appeal. Conclusion: The Tribunal held that the notice dated 01-06-2005 issued by the Assessing Officer u/s 158BD r.w.s 158BC was not valid as it did not meet the legal requirements established by the Hon'ble apex court in the case of Manish Maheshwari (supra). Consequently, the block assessment order was quashed, and the additional ground of appeal by the assessee was allowed. As a result, the other grounds raised by the assessee in the CO were not decided, and the appeal filed by the Revenue was dismissed as infructuous.
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