Income Tax Scrutiny Quashed for Non-Compliance with CBDT Instructions

CIT Vs Crystal Phosphates Ltd. (Punjab and Haryana High Court) Punjab and Haryana High Court has dismissed appeals filed by the Income Tax Department, affirming a decision by the Income Tax Appellate Tribunal (ITAT) to quash a scrutiny assessment against M/s Crystal Phosphates Ltd. The High Court’s ruling, which addressed common questions of law and fact in two appeals (ITA No.140 and 141 of 2013), emphasized the binding nature of instructions issued by the Central Board of Direct Taxes (CBDT) regarding the selection of cases for scrutiny. The judgment effectively set aside the entire as...