Hindcon Chemicals Limited Vs DCIT (TAT Kolkata)
Assessee challenged the reassessment completed u/s 143(3)/147 on the ground that the notice issued u/s 143(2) dated 20.07.2017 was invalid since it did not specify whether the case was selected for limited scrutiny, complete scrutiny, or compulsory manual scrutiny, contrary to mandatory CBDT Instruction No. F.225/157/2017/ITA-II dated 23.06.2017 prescribing specific formats for such notices. Assessee argued that non-compliance with this instruction renders the notice invalid, thereby vitiating the entire assessment. AO contended that the notice was computer-generated & absence of category would not invalidate scrutiny selection.
Tribunal held that CBDT instructions issued u/s 119 are binding on revenue authorities; a notice not conforming to prescribed formats is invalid & all consequential proceedings are void ab initio. Tribunal relied on its earlier rulings in Tapas Kumar Das Vs ITO & Ashok Kumar Agarwal (HUF) Vs ACIT, which decided identical issues in favour of taxpayers. Following the same, Tribunal quashed the assessment as invalid.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 23.06.2025 for the AY 2014-15.
2. At the outset, during the course of assessment proceedings, the assessee has raised legal issue challenging the assessment framed based on notice issued u/s 143(2) of the Act which is not in accordance with instruction no. F. No. 225/157/2017/ITA-II Dated 23-06-2017, issued by the CBDT.
