Topic
ITAT Delhi sets a precedent by remanding a case where the CIT(A) failed to pass a reasoned order on merits, violating Section 250(6) of the Income Tax Act. The ruling reinforces the obligation of appellate authorities to provide detailed justification for their decisions, ensuring natural justice for taxpayers.
The ITAT Kolkata has ruled that invoking Section 263 to revise a previously scrutinized assessment is impermissible unless the revenue demonstrates actual prejudice, not just a technical error. This clarifies that scrutiny under Section 143(3) does not waive the twin-condition test, protecting taxpayers from arbitrary revisionary orders and reinforcing procedural fairness in income tax administration.
The ITAT Kolkata has ruled that once a case is selected for scrutiny under Section 143(2), any intimation under Section 143(1) issued thereafter is legally void. This sets a critical precedent for taxpayers and CPCs, reinforcing that procedural sequencing is mandatory and that adjustments to exemptions like Section 10(23C)(VI) cannot be made through automated intimations after scrutiny is triggered.
ITAT Lucknow quashes an assessment order for failure to issue the mandatory Section 143(2) notice, reinforcing that jurisdictional compliance is non-negotiable regardless of return filing timelines. The ruling underscores that procedural lapses render assessments void ab initio, impacting taxpayers facing re-assessment proceedings.