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2020 (12) TMI 858 - AT - Income TaxReopening of assessment u/s 147 - ITO jurisdiction to frame the reassessment as per the CBDT Instruction No. 1/2011, dated 31.01.2011 - Jursidiction of Reassessment framed by the ITO/AO - HELD THAT:- We find that the assessee has filed his return of income for the year under consideration before the ACIT, Circle-1, Bhubaneswar, which is clear from the copies of ITR filed for the assessment year 2012-2013 however, the reassessment has been completed by the ITO, Angul Ward, Angul. When the return of income filed by the assessee is more than ₹ 15 lakhs, the ITO has no jurisdiction to frame the reassessment as per the CBDT Instruction No. 1/2011, dated 31.01.2011. ITO/AO should have transferred the case to the Assistant Commissioner/Deputy Commissioner, who is having well jurisdiction to frame the reassessment as per the above CBDT Instruction for the relevant assessment year under consideration. This fact was also uncontroverted by the ld. DR before us. It is also not the case of the revenue that the assessee has not raised any objection with regard to jurisdictional issue before either of the authorities below. The AO in its remand report has also accepted that this is a jurisdictional issue and therefore, he brought the provisions of Section 292BB of the Act to reject the objection of the assessee. When the issue is a jurisdictional one, the provisions of Section 292BB of the Act cannot cure jurisdictional error. On perusal of the appellate order, it is also clear that the CIT(A) has discussed the jurisdictional issue raised by the assessee, however, he has rejected the contention of the assessee, which in our opinion, amounts to overruling the CBDT Instruction issued in this regard. It was the duty of the revenue authorities to give effect to the circulars/instructions issued by the CBDT which are binding on them. If the CBDT Instruction No. 1/2011, dated 31.01.2011 is not accepted by the revenue authorities, as has been occurred in the present case in hand, anyone can frame the assessment/reassessment even having no jurisdiction to enter into the same. The power conferred upon the CBDT to issue instructions and directions by section 119 of the Act is for proper working of the Act, which should be followed by the revenue authorities in true spirit. Reassessment framed by the ITO/AO in the present case is legally not sustainable as having no jurisdiction. Accordingly, we set aside both the orders of authorities below and quash the reassessment framed by the ITO/AO, Angul Ward, Angul and allow the legal issue raised by the assessee.
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