Dolphin Promoters and Builders Vs ACIT (ITAT Raipur)
ITAT Raipur held that assessment framed under section 144 of the Income Tax Act by Additional CIT in absence of order under section 127 and order under section 120(4)(b) is invalid as without having valid assumption of jurisdiction.
Facts- The appellant firm derives income from Real Estate business and construction. During the course of assessment proceedings, the AO issued various notices from time to time, calling for relevant details. The appellant did not make adequate compliance with the notices issued. A show cause notice dated 21/1/2014 was issued and duly served on the appellant on 22/1/2014 requiring the appellant to show cause as to why the assessment may not be completed ‘ex-parte’, on the basis of material available on record. There was no compliance even after this notice. The AO noted that the appellant is a habitual defaulter. For instance, in connection with the assessment proceedings for A.Y.2010-11, Penalty u/s 271(1)(b) of the I.T. Act amounting to Rs.20,000/- for two defaults (non- compliance with the statutory notices issued u/s 143(2)/ 142 of the I.T. Act) was levied.
Order was passed u/s 144, making various additions. CIT(A) confirmed the additions made by AO. Being aggrieved, the present appeal is filed.
