The Income Tax Appellate Tribunal, Delhi Bench ‘A’, presided over by Dr. B. R. R. Kumar and Sh. Saktijit Dey, addressed an appeal filed by Brij Gopal Construction Company Pvt. Ltd against the order of CIT(A)-24, New Delhi for the assessment year 2018-19. The key issue was the legitimacy of an intimation sent under section 143(1) of the IT Act, after a notice for a regular assessment under section 143(2) had already been issued.
The tribunal noted that the notice under section 143(2) was issued on 22.09.2019, followed by the intimation under section 143(1) on 22.10.2019, raising a question about the correct procedural order. Drawing upon the judgment from the Hon’ble Supreme Court in the case of CIT vs. Gujarat Electricity Board, it was established that once proceedings under section 143(2) are initiated, it is a limitation on the jurisdiction of the Assessing Officer to commence proceedings under section 143(1)(a).
The tribunal found that the sequence of actions by the revenue was contrary to the procedural norms set by law, rendering the subsequent intimation legally invalid. Consequently, the appeal by Brij Gopal Construction was allowed, emphasizing the need for adherence to procedural timelines and jurisdictional authority in the assessment process.
This decision highlights the importance of the order in which tax assessments and intimations should be handled, ensuring that earlier engagements like notices for regular assessments take precedence over summary proceedings under section 143(1).
Brij Gopal Construction Co. P.Ltd, Delhi vs. DCIT, Central Circle-3, New Delhi (2018-19)
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