9911796707
TMI Blog2023 (8) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... r. CIT in writing and only thereafter the Assessment Order was passed ? - HELD THAT:- As the scheme of assessment as provided u/s 143 is a complete code by itself and the circumstances under which the power under sub-section (2) of Section 143 could be invoked has been clearly spelt out and on a reading of sub-section (3) of Section 143, it is evidently clear that on the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the AO may require on specified points, and after taking into account all relevant material which he has gathered, the AO shall, by an order in writing, make an assessment of the total income or loss of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n writing and only thereafter the Assessment Order was passed ? b) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law in quashing the order passed under Section 143(3) of the Act merely due to the fact that the Assessing Officer had made enquiries outside the specific issues before conversion of the case into complete scrutiny ? c) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal was justified in law in not considering the fact that the Assessing Officer had passed the order under Section 143(3) of the Act, 1961 only upon approval of the Pr. CIT in writing to perform a complete scrutiny and the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Tribunal examined the jurisdictional issue alone and noted that the Assessing Officer had issued notice under Section 143(2), dated 28th July, 2016, for a Limited Scrutiny covering four issues namely, interest expenses, income from real estate business, sale turnover mismatch and other expenses claimed in the profit and loss account. Subsequently, by notice dated 20th February, 2017, issued under Section 142(1) of the Act, the Assessing Officer called for information on secured and unsecured loan deposits and this was admittedly prior to the Limited Scrutiny being converted into a Complete Scrutiny by order dated 14th December, 2017. The learned Tribunal while holding that such action of the Assessing Officer was impermissible re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion would be restricted to such issue under the Limited Scrutiny. Thus, the learned Tribunal dismissed the appeal filed by the assessee. Mr. Kundalia, learned standing counsel appearing for the appellant, places reliance on the decision of the Hon ble Supreme Court in Venkataswamappa vs. Special Duty Commissioner (Revenue), (1997) 9 SCC 128. The said decision arose out of the case under the provisions of the Land Acquisition Act, 1894. The question was whether publication of the notification under Section 4(1) of the said Act in the local newspaper earlier to the actual publication in the Gazette was an illegality or mere irregularity. After taking note of the object behind the procedure regarding publication of the notification as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment. Therefore, the question of part of the provision being procedural is an incorrect interpretation of the scheme provided under Section 143 of the Act. Further, as noted above, the CIT(A) has examined the merits of the matter and after taking note of the facts granted relief to the assessee to the extent indicated therein. Thus, for the above reasons, we find that the revenue has not made out any case for interference of the order passed by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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