Allied Concepts India Pvt. Ltd. Vs ITO (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) considered the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals)-NFAC for Assessment Year 2017-18. The appeal challenged additions of ₹59,83,820 under Section 68, applicability of Section 115BBE, disallowances under Section 37, alleged violation of principles of natural justice, and non-compliance with CBDT Instruction No. 20/2015.
The assessee also sought admission of additional legal grounds challenging the validity of the notice issued under Section 143(2) of the Income Tax Act. It was contended that the notice dated 28.08.2018 had been issued in violation of CBDT Instruction F. No.225/157/2017/ITA-II dated 23.06.2017 because it did not specify the scope and reasons for scrutiny in the prescribed revised format. The assessee submitted that the issue went to the root of the Assessing Officer’s jurisdiction and could therefore be raised before the Tribunal. Reliance was placed on judicial precedents permitting additional legal grounds affecting jurisdiction to be raised at the appellate stage.
The Tribunal admitted the additional ground, observing that it involved a legal issue concerning the validity of the assessment based on the notice issued under Section 143(2).
The assessee argued that the CBDT, through Instruction dated 23.06.2017 issued under Section 119 of the Act, had prescribed mandatory revised formats for scrutiny notices under Section 143(2). Since the impugned notice had not been issued in the prescribed format, it was submitted that the notice was void ab initio and incapable of conferring jurisdiction on the Assessing Officer to undertake scrutiny assessment. The assessee relied upon the Delhi Bench decision in Shilpi Sardana v. DCIT and several other Tribunal decisions.
