Case Law Details
Barnala Steel Industries Ltd Vs ACIT (ITAT Delhi)
Consolidated Issue of Notice In Search Case For Different Assessment Years Makes Entire Assessment Order Invalid
We have heard both the parties and perused all the relevant material on record. From the perusal of the notice issued u/s 153A r.w.s. 153C/143(2) of the Act, it is a clear cut case of overlooking the procedure and provisions set out in the Income Tax Act, 1961. Under these sections, the Assessing Officer cannot issue consolidated notices for different Assessment Years. It is statutory requirement for each assessment year to issue statutory notice separately. The Assessing Officer failed to comply with the statute under which the prescribed procedure is mandatory for the Revenue to be followed. The reliance of the Ld. AR in case of Y Narayana Chetty vs. ITO (35 ITR 388)(SC) is relevant in present case, therefore, the notice itself is bad in law and void ab-initio. Thus, the assessment order does not survive. Thus, ITA No.3201/Del/2011 is allowed. There is no need to go into the merits of the case.
As regards, the penalty appeal being ITA No.6783/Del/2013. It is appeal filed against penalty order passed u/s 271(1)(c) of the Act, which is consequential of the quantum appeal. Since, the quantum appeal itself has been allowed and the assessment order is quashed, the penalty does not survive.Thus, ITA No.6783/Del/2013 is also allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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