This case involves Shri Vishnu Eatables India Ltd., a company based in Delhi, challenging the jurisdictional basis of the income tax assessment made by the DCIT, Central Circle, Karnal for the assessment year 2011-12.
The core issue in this appeal is the procedural irregularity related to the issuance of notice under Section 153C of the Income Tax Act. The notices were issued before the recording of satisfaction notes, which is a mandatory requirement for jurisdiction under Section 153C, leading to a significant jurisdictional error.
The appellant’s counsel highlighted that the notices were issued without the prerequisite satisfaction notes being recorded beforehand. This procedural lapse was acknowledged by the Tribunal, which led to the quashing of the assessment orders for AY 2011-12 due to the absence of valid jurisdiction.
The case underscores the importance of adhering to statutory procedures in tax assessments. The Tribunal’s decision to quash the assessment orders based on jurisdictional errors provides a critical precedent on the necessity of following due process in tax administration.
The Tribunal’s decision in favor of Shri Vishnu Eatables India Ltd. not only rectified the procedural anomalies but also reinforced the legal requirements for valid tax assessments. This judgment serves as a significant reference for tax practitioners and taxpayers alike, emphasizing the adherence to legal standards and procedures.
Order pronounced on June 27, 2023, by the ITAT, Delhi Bench ‘G’.
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