Case Law Details
From the assessment order it is clear that the assessee has not raised any objection as to service of notice u/s 143(2) during the course of assessment proceedings. Therefore, the provisions of Proviso to sec. 292BB will not be pressed into service after completion of assessment. Further CBDT vide Circular No.1 of 2009 clarified that the provisions of sec. 292BB shall be applicable in all proceedings which were pending on 1.04.2008. Hon’ble Punjab & Haryana High Court in the case of CIT vs. Panchvati Motors (P) Ltd. in ITA No.292 of 2008, dated 3.05.2011 has held that in a case where no objection regarding valid service was taken before the completion of assessment, provisions of sec. 292BB will be applicable to all pending assessments as on 1.04.2008.
Since the provisions of sec. 292BB(1) are applicable for Assessment Year in question as the proceedings were pending as on that date and the assessee had not raised any objection during the course of assessment proceedings and had participated in the assessment proceedings, the assessment cannot be annulled on the ground that valid notice u/s 143(2) was not served on the assessee. Accordingly in our considered opinion as held by the Hon’ble Punjab & Haryana High Court in the case of Panchvati Motors (P) Ltd. (supra), assessment cannot be annulled. We therefore, set aside the order of the learned CIT(A) and restore the order of the assessing officer on assumption of jurisdiction.
INCOME TAX APPELLATE TRIBUNAL, DELHI
I.T. A. No.2589/Del/2011 – Assessment Year: 2007-08
Income Tax Office
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