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May 2024

Assessment — Jurisdiction — CBDT Instructions — Binding on authorities — Time prescribed by CBDT — Burden of proof — Burden on authority assuming jurisdiction to establish that instructions satisfied in letter and spirit — Notice issued u/s. 143(2) not in terms of instructions of CBDT — Notice and assessment without jurisdiction.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

9 CIT vs. Crystal Phosphates Ltd.

[2024] 461 ITR 289 (P&H.)

A.Y.: 2006–07

Date of order: 28th March, 2023

Ss. 119, 143(2) and 144 of ITA 1961

Assessment — Jurisdiction — CBDT Instructions — Binding on authorities — Time prescribed by CBDT — Burden of proof — Burden on authority assuming jurisdiction to establish that instructions satisfied in letter and spirit — Notice issued u/s. 143(2) not in terms of instructions of CBDT — Notice and assessment without jurisdiction.

The assessee’s case for A.Y. 2006–07 was selected for scrutiny and assessment was completed u/s. 144 of the Income-tax Act, 1961 by making various additions / disallowances.

The appeal was partly allowed by the CIT(A). The assessee as well as the department filed appeals before the Tribunal. The Tribunal d

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