#CBDT Instruction

ITAT Delhi rules that reassessment proceedings under Section 147 initiated by ACIT for corporate assessees with returned income below ₹30 lakh are jurisdictionally void, as CBDT Instruction 1/2011 mandates assessment by ITO. The ruling reinforces jurisdictional compliance for reassessment, impacting corporate taxpayers in metro cities.

ITAT Delhi rules that gold jewellery owned by a married daughter residing abroad, supported by an affidavit, cannot be treated as unexplained income under Section 69 merely on presumptive grounds. The ruling emphasizes that CBDT guidelines on permissible jewellery limits do not override documented ownership, reinforcing natural justice in tax assessments.

ITAT Delhi rules that an assessment order is void ab initio if the notice under Section 143(2) is issued by an Assessing Officer lacking pecuniary jurisdiction, as mandated by CBDT Instruction No. 1/2011. The ruling reinforces jurisdictional compliance as a non-negotiable prerequisite for valid tax assessments, impacting all pending and future scrutiny cases.

ITAT Mumbai quashed an assessment order, ruling that an Income Tax Officer lacks jurisdiction to issue a notice under Section 143(2) of the Income Tax Act if the assessee's declared income exceeds ₹20 lakhs, as per CBDT Instruction No.1/2011. The tribunal held that such notices must be issued by a Deputy/Assistant Commissioner, making the assessment proceedings void ab initio.