Staark Accessories Private Limited, ... vs Acit, Circle 13(2)(2) on 6 February, 2024
upheld the tribunal's decisions that assessee didn't raise the plea of additional ground
earlier in spite of the opportunity being available. Honourable Punjab and Haryana High
Court in this case has further held that "no doubt that an appellate authority can allow a
question to be raised for the first time even if such a question was not raised at a lower
forum but the discretion to do so has to be exercised in the interest of justice in the facts
and circumstances and not mechanically." (Annexure C)
Furthermore, in case of Josh Builders & Developers (P.) Ltd. V. Principal Commissioner of
Income Tax-I, Chandigarh [2017] 79 taxmann.com 435 (Punjab & Haryana) honourable
Punjab & Haryana High Court has held that "Assessee, having not raised any objection
with regard to issuance and service of a valid notice during assessment proceedings and
rather, without any objection, having voluntarily taken part in such proceedings, could not
seek annulment of assessment proceedings on ground of non-service of notice." (Annexure
D)
Without prejudice to the above this additional ground should not be allowed at this stage
as section 124(3) specifically bars a person from raising question about jurisdiction of AO
after expiry of 1 month from the date of service of notice under section 143(2). As per
section, 124(3)(a) no person shall be entitled to call in question the jurisdiction of an
assessing officer, where he has made a return under sec 139 (1), after the expiry of 1
month from the date on which he was served a notice under section 143(2) or 142(1) or
after completion of assessment whichever is earlier. In this case assessee has filed return
for A.Y 2016-17 under sec 139(1) declaring loss of Rs. 36413448 and case was selected for
scrutiny through system Computer Added Scrutiny Selection (CASS). Accordingly, statutory
notice under sec 143(2) dated 03/07/2017 was issued automatically by without any
manual interference by the office of ITO 13(2)(4).