The Income Tax Appellate Tribunal, Delhi Bench ‘H’, dealt with an appeal filed by the Assistant Commissioner of Income Tax, Central Circle-28, New Delhi against Tehri Pulp & Paper Ltd, Muzaffarnagar concerning the assessment year 2007-08. The tribunal reviewed the case following an order dated November 15, 2019, from CIT(A)-25, New Delhi, which pertained to discrepancies in procedural applications by the tax department.
One of the critical issues addressed was the validity of proceedings under section 147 of the Income Tax Act. The Revenue challenged the CIT(A)’s decision on the basis that proper procedural protocols were not followed, particularly around the issuance and management of notices under section 143(2). The tribunal noted that the Assessing Officer admitted in a remand report that no notice under section 143(2) was found in the assessment records, which is a mandatory requirement for the validation of reassessment proceedings.
The tribunal upheld the CIT(A)’s decision, referencing the precedent set by the Hon’ble Delhi High Court in similar cases which have established that the non-issuance of a required notice renders the subsequent assessment void. The decision emphasized the importance of adhering to statutory requirements in tax assessment procedures to ensure fairness and legal compliance.
In conclusion, the Tribunal dismissed the Revenue’s appeal, affirming that the assessment order passed was invalid due to procedural irregularities, specifically the failure to issue a mandatory notice under section 143(2). This case highlights the critical nature of following procedural laws in tax assessments to maintain the integrity of tax administration processes.
ACIT, Central Circle-28, New Delhi vs. Tehri Pulp & Paper Ltd, Muzaffarnagar (2007-08)
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