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2019 (11) TMI 534 - ATPBPTA, NEW DELHIJurisdiction of the Initiating Officer to initiate the investigation - Benami transactions - Section 26 (3) of the Prohibition of Benami Property Transactions Act, 1988 - Standard Operating Procedure (SOP) - CBDT Notification S.O. 1621(E) dated 18.05.2017 - HELD THAT:- This SOP was issued prior to the issue of Show Cause Notice under Section 24(1) of the PBPT Act, 1988. In the said SOP at Para No.4 the jurisdiction of I.O., Approving Authority and Administrator has been defined. It is on record that at this point of time the address of the Benamidar i.e. M/s. DSIPLwas at Ghaziabad which is coming under the jurisdiction Joint Commissioner of Income-Tax/Additional Commissioner of Income-Tax, (Benami Prohibition), Kanpur. It is undisputed that the properties are situated in Noida, Greater Noida, in the District of Ghaziabad within the jurisdiction of the same authority. It is clear that the I.O. had no territorial jurisdiction to issue the Show Cause Notice to any of the parties. The Competent Authority is the I.O. under the JCIT/Additional CIT, BPU Unit, Kanpur as per the areas defined under the said notification of CBDT. In the present case none of the criteria prescribed in Para 4 of the SOP is fulfilling. The Ld. Adjudicating Authority appears to have not considered this in proper prospective and hence passed the impugned order. In view of the aforesaid two documents and on the basis of foregoing reasons stated above, we are of the considered view that the I.O., Mumbai ought not to have issued show cause notice and taken up enquiry/investigation in the matter. The Competent Initiating Officer, having jurisdiction, is at liberty to initiate appropriate proceedings in accordance with law - the appeals are not decided either on merit or on any other issues except the “territorial jurisdictional authority of Initiating Officer” issuing show cause notice and subsequent actions on the basis of said notices - appeal allowed.
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