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Case laws against Exparte order!!!

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Gourav

Student

42 Points Posted on 03 February 2010

Hi friends,

Can you suggest me any case laws or reson for the following case:

We failed to reply to notice & show cause notice given by the AO & hence it passed an exparte order under section 144 of The IT act. Suggest me any reason or case laws we can produce before the CIT(Appeals) against the exparte order???

Thank you.

Replies (2)

Amir

Learner

4898 Points Posted on 03 February 2010

Dear Gaurav,

Failure to reply of Notice gives AO the power to do assessment u/s 144 & once it has been done u cannot challenge it on the ground of validity..

Options for u -

1)U HAD REASONABLE CAUSE FOR NOT REPLYING TO THE NOTICE & THE SAME WERE TOLD TO AO BUT HE REFUSED TO ACCEPT..

2) AO has not done assessment properly, i mean the basic principles of assessment were not followed while estimating income, etc.

Validity of best judgment assessment cannot be assailed - A best judgment assessment can only be challenged in an appeal in respect of the quantum of income or the quantum of tax as determined by the ITO, and not on the ground of validity of the assessment - Gaurishanker Kedia v. CIT [1963] 49 ITR 655 (Bom.).