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TMI Blog2024 (4) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... violation of the circular No. 1/2011 dated 31.01.2011.Appeal filed by the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... cular no. 5/2012 is arbitrary and not warranted under law. (iv) That the alleged disallowance is based on wrong understanding and appreciation of CBDT circular and the decision of Hon'ble Supreme Court in the case of Apex Laboratories Private Limited. 3(i) That on the facts and circumstances of the case, the CIT (A) was not justified in confirming the disallowance of foreign travelling expenses to the extent of Rs. 88,64,363/ u/s 37(1) of the Income Tax Act, 1961 without properly appreciating the documents filed by the Appellant. ii) That the Appellant having furnished documents giving complete details /purpose of foreign travel, the observations made by the CIT (A) are whimsical and without pointing out any specific defect or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of Rs. 5,65,419/-incurred on account of entertainment, festival, car maintenance expenses, etc. on the alleged ground of personal element without any evidence or material. (ii) That these expenses having been incurred exclusively for the purpose of business, the ad-hoc disallowance of Entertainment, Festival, Car maintenance expenses are merely on the basis of conjectures and surmises and not sustainable on facts and under the law particularly when the same is contrary to past history. 7. That orders passed by the lower authorities are not justified on facts and same are bad in law. That the appellant craves leaves to add, alter, amend, forgot any of the grounds of appeal at the time of hearing." 3. Brief facts of the case a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Cavin International Vs. DCIT in ITA 5363/Del/2017 and sought for allowing Ground No. 1 and its sub Grounds and also prayed for setting aside the Assessment Order. 5. Per contra, the Ld. Departmental Representative relying on the orders of the Lower Authorities sought for dismissals of the Ground No. 1 and its sub Grounds. 6. We have heard both the parties and perused the material available on record. As could be seen from the records the assessee has filed return for the Assessment Year 2015-16 on 30/09/2015 declaring NIL income. A notice u/s 143(2) has been issued by the ACIT, Circle 50 (1), New Delhi on 28/07/2016 subsequently, the impugned assessment order has also been passed by the ACIT, Circle 50(1) New Delhi on 31/12/2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of above instructions shall be Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Mumbai and Pune. The above instructions are issued in supersession of the earlier instructions and shall be applicable with effect from 1-4-2011." 7. From the above it is evident that as per CBDT Instruction No. 1/2011 dated 31/01/2011, the Jurisdiction to issues notice u/s 143(2) in the case when the taxable income is less than 20,00,000/- comes under the ITO. The identical issue has been decided by the Coordinate Bench of the Tribunal in the case of M/s. Kelvin International Vs. DCIT (ITA NO. 5363/Del/2017) dated 22.12.2023, wherein the notice has been issued contrary to the CBDT Circular No. 1/2011, therefore, the same has been declared as havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he second appellate proceedings. We are unable to comprehend ourselves to agree to this argument of the revenue in as much as in our considered understanding, the provisions of section 292BB applies only in case of improper service/ wrong service of notice and not to objection not taken by the assessee during assessment proceedings. Section 292BB of the Act does not save the defect of non-issue of valid notice u/s 143(2) of the Act by the jurisdictional officer. Hence, in the absence of valid and legal notice issued by the jurisdictional officer, the assessment framed on the assessee requires to be quashed. This view of ours is further fortified by the following decisions:- a) Decision of the Hon'ble Punjab and Haryana High court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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