Luxor Nano Technology Pvt. Ltd. Vs ACIT (ITAT Delhi)
The ITAT Delhi partly allowed the assessee’s appeal for statistical purposes in respect of the assessment framed under Section 143(3) for AY 2016-17.
The assessee first challenged the validity of the notice issued under Section 143(2), contending that it violated CBDT Instruction F.No. 225/157/2017/ITA-II dated 23.06.2017. The Tribunal held that the issue stood covered against the assessee by the Delhi High Court’s decision in Bharat Bansal vs. National Faceless Assessment Centre, which held that administrative circulars do not override statutory provisions, scrutiny formats are internal administrative guidelines, and such circulars do not create enforceable rights for taxpayers. Accordingly, the challenge to the notice was rejected.
On the merits, the Tribunal considered the addition of ₹50 lakh under Section 68 relating to an alleged loan transaction from an alleged entry-provider shell company. It examined the CIT(A)’s order and observed that although it ran to 58 pages, most of it merely reproduced the assessment order, grounds of appeal, and the assessee’s written submissions. The Tribunal found that the actual adjudication was confined to a brief discussion of the Directorate of Investigation, Kolkata report and did not contain a speaking order or proper findings on the facts of the assessee’s case.
