Whether Notice & Assessment order u/s 143(2) are void for non-application of mind by AO if that case is selected for scrutiny under CASS (Computer assisted Scrutiny Selection) ?

Last updated: 13 September 2014

Court :
ITAT Lucknow

Brief :
The case was selected for scrutiny as per computer selection. Appellant contended that there was no application of mind by the Assessing Officer as required u/s 143(2)(i) and that issuance of notice u/s 143(2) is mandatoryand omission on the part of the Assessing Authority to issue notice u/s 143(2)cannot be a procedural irregularity and the same is not curable.CIT(A) also rejected the claim. On basis of facts and judgments presented before the Tribunal, it was held that the entire jurisprudence in respect of tax administration suchas principle of natural justice etc. are with the sole object of ensuring that the tax payer is not unduly harassed by the tax department having almighty power of state.Some of these steps are that tax returns can be filed in a paper less manner inorder to improve voluntary compliance by the tax payer and also to reduce the burden of filing voluminous documents along with the tax return.Thus only very small percentage, 2-3% of total tax returns will be scrutinized by the department.Thus, it cannot be said that the decision of the AO to select the case for scrutiny in this system is not an independent decision of the AO.

Citation :
U.P. State Industrial Development Corporation Ltd. (UPSIDC) – Appellant – Versus- Dy.C.I.T. – Respondent