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2021 (11) TMI 706 - ITAT RAIPURRevision u/s 263 by CIT-A - Jurisdiction of AO - invalid notice u/s 143(2) - valid jurisdiction available whatsoever with the AO, Kolkata in the instant case -Transfer of case u/s 127 - HELD THAT:- Assessee has taken a plea that where the assessment order has been framed on the basis of an invalid notice u/s 143(2) of the Act, the very premise of the assessment framed is without any legal basis - assessment order in itself is illegal and bad in law owing to substantial defect of lack of jurisdiction. The action of the PCIT to revise such illegal order is a complete non-starter and is wholly unsustainable in law. We notice a few facts. An order under Section 127(2)(a) dated 13.09.2013 was passed by the CIT, Kolkata II, Kolkata whereby the jurisdiction over the assessee was transferred from the ITO, Ward (4)(2), Kolkata to ACIT, Central Circle, Raipur. It was further noted at the bottom of the aforesaid transfer order that the order shall take immediate effect. Hence, in view of the aforesaid transfer order, the AO at Kolkata was ousted of its jurisdiction and consequently had no locus over the assessee from the date of aforesaid transfer order. AO at Kolkata was fully aware of this fact, as can be seen from his action, in respect of assessment year 2014-15. As pointed out on behalf of assessee, the proceedings under Section 143(2) were dropped by AO, Kolkata for AY 2014-15 when he was apprised of the fact of transfer of jurisdiction. The facts, in the instant case, are thus speaking for itself. It is not in dispute that the AO, Kolkata at the relevant time of issuance of notice u/s 143(2) dated 09.08.2018 completely lacked jurisdiction over assessee to do so. The issuance of notice u/s 143(2) is governed by statutorily prescribed procedures. On a combined reading of Sections 120(1), 120 (2), 124(1), Rule 12E of the IT Rules, 1962 and transfer order passed by CIT under Section 127 of the Act, we have no hesitation to hold that there was no valid jurisdiction available whatsoever with the Assessing Officer, Kolkata in the instant case. The notice issued under Section 143(2) of the Act by such officer is thus wholly without jurisdiction and thus a non-est notice. The assessment has been admittedly framed based on such non-est notice without taking any corrective step in this direction. Assessing Officer at Raipur has not issued any separate notice u/s 143(2) to assume power to assess the income of the assessee. He has merely continued his action based on a non-est notice issued by the AO of a different jurisdiction. The assessment order passed on the basis of an invalid and non-est notice thus cannot be countenanced in law. Consequently, the revisional action under Section 263 is not permissible in law in parity with the decision of the co-ordinate Bench of the Tribunal in Supersonic Technologies (P) Ltd [2018 (12) TMI 912 - ITAT DELHI] In the legal ground of lack of jurisdiction raised on behalf of the assessee. The impugned revisional order is thus required to be quashed on this ground alone. Hence we do not consider it expedient to go into the aspect of the merit of issues raised in the show-cause notice arising from an invalid and non-est order.The revisional order under Section 263 is thus quashed and set aside. Appeal of the assessee is allowed.
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