The validity of the scrutiny process was challenged due to the ...

Lack of approval for scrutiny renders assessment void.

Case Laws Income Tax

November 6, 2024

The validity of the scrutiny process was challenged due to the lack of approval obtained by the Assessing Officer from the Jurisdictional Principal Commissioner of Income Tax, as mandated by CBDT Instruction No. 5/2017 dated 7.7.2017. It was held that non-compliance with CBDT instructions would render the entire assessment proceedings void ab initio. Reliance was placed on the decision in CIT vs Best Plastics P Ltd, wherein it was ruled that the revenue is bound to follow CBDT instructions, and failure to do so would be fatal to the assessment proceedings. The jurisdictional defect cannot be cured by the provisions of Section 292BB of the Income Tax Act, as held in the case of LAXMAN DAS KHANDELWAL. Consequently, the entire assessment framed for the Assessment Year 2016-17 was quashed, and the assessee's cross-objections were allowed.

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The validity of the scrutiny process was challenged due to the ...

Lack of approval for scrutiny renders assessment void.

Case Laws Income Tax

November 6, 2024

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