Income Tax : Section 292B is considered as a protection to the Income tax authorities for most of short comings in proceedings due to technical...
Income Tax : Our focus of the article will be on section 144B of the Income-tax Act, 1961 (Act) which has been introduced with effect from 01.0...
Income Tax : It is noticed that the department has lost the revenue in number of cases mainly on account of fatal mistake made by the AO in iss...
Income Tax : Despite there was a valid disclosure made by assessee and AO being duly apprised of the factum of merger, AO made the draft assess...
Income Tax : ITAT Mumbai held that notice for re-assessment proceeding under section 148 of the Income Tax Act issued on a non-existing entity ...
Income Tax : Court emphasized that issuing a notice to a non-existent entity constitutes a jurisdictional defect, which Section 292B cannot cur...
Income Tax : Addition of Rs.10 Crore under Section 271(1)(c) was not justified as Revenue failed to specify whether the addition was being made...
Income Tax : ITAT Lucknow quashes penalty u/s 271B for failure to file audit report, stating incorrect grounds for penalty initiation....
ITAT Kolkata held that enquiring on issues other than limited scrutiny issue, before conversion of limited scrutiny to complete scrutiny, is against the procedure laid down in Instruction No. 5/2016 of CBDT dated 14.07.2016. Accordingly, assessment order is quashed as nullity and bad-in-law.
ITAT Delhi held that AO drew belief on the reasons which were later found to be totally non-existent. Such defect in the reasons cannot be ascribed as a mere technical irregularity and consequently defect cannot be cured by applying Section 292B of the Income Tax Act.
Roshan Lal Verma Vs DCIT (ITAT Delhi) The validity of impugned assessment order resulting in present appeal is under challenge on the grounds of notice issued under Section 143(2) purportedly barred by limitation. It is the case of the assessee that, in the instant case, assessee has filed the return of income on 14.10.2011 and […]
PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) Supreme Court in Commissioner of Income-Tax vs. Laxman Das Khandelwal (supra) has clearly stated that the scope of Section 292BB is to make service of notice having certain infirmities to be proper and valid. However, the section does not save complete absence of notice. For section […]
PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) This Court is in agreement with the Tribunal that Section 292BB does not give the power to condone the failure or delay in issuing the statutory notice required to be issued under Section 143(2) of the Act. Section 292BB deals with failure of service of notice […]
Where notice under section 148 was issued to a non-existing entity as said entity ceased to exist at the time of the issue of the notice on account of merger; the said notice was liable to be quashed and it was not an error that could be corrected under section 292B.
PCIT Vs Mahla Real Estate Pvt. Ltd. (Rajasthan High Court) We do not find that the Tribunal has committed any error in setting aside the assessment. The counsel for the revenue however has strenuously argued that in view of Section 292BB inserted in the Income Tax Act, mere defect in service of notice had to […]
Section 292B is considered as a protection to the Income tax authorities for most of short comings in proceedings due to technical aspects.’Substance over form theory’ is the underlining philosophy of section 292B of the Act.
Our focus of the article will be on section 144B of the Income-tax Act, 1961 (Act) which has been introduced with effect from 01.04.2021 and already stands widely litigated before the courts. While the technology was recasting the process of assessment and appellate proceedings over the years, COVID-19 induced lockdown quickened the process multi-fold.
It is noticed that the department has lost the revenue in number of cases mainly on account of fatal mistake made by the AO in issuance of notice to dead person/ non-existent entity or in framing the assessment order in the name of dead person/non-existent entity.
