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2014 (4) TMI 1303 - AT - Income TaxJurisdiction of the Assessing Officer - Change of jurisdiction relating to the areas within the jurisdiction of the different Directors General or Chief Commissioners or Commissioners - HELD THAT:- As assessee has objected the jurisdiction of the AO within the time limit as has been specified u/s 124(3)(a), therefore, the application moved by the assessee for challenging the jurisdiction was a valid one. As noted Section 124(4) lays down that where an assessee calls in question the jurisdiction of the AO, then the AO shall, if not satisfied with the correctness of the claim, refer the matter for determination under sub-section (2) before the assessment is made to CCIT or DG & CIT. Need to refer to Director General, Chief Commissioner or Commissioner concerned - Section 124(2), it is apparent that incase the assessee objects about the jurisdiction and the AO is not satisfied, AO is bound to refer the question of the jurisdiction to the Director General or the Chief commissioner or the Commissioner, incase it relates to the same Director General or Chief Commissioner or the Commissioner, but where the question of jurisdiction relating to the areas within the jurisdiction of the different Directors General or Chief Commissioners or Commissioners, the AO is bound to refer it to the Director General, Chief Commissioner or Commissioner concerned and if those people are not in agreement, then it should be decided by the Board or by such Director General or Chief Commissioner or Commissioner as the Board may specify this by notification in the Official Gazette. In the impugned case, we noted that the AO himself has decided the issue of the jurisdiction and sent the notice to the assessee u/s. 142(1), which remained uncomplied and accordingly the best judgment assessment was passed u/s. 144. AO was not correct in law in deciding the issue of the jurisdiction himself. We, therefore, set aside the order passed by the Assessing Officer and restore the issue to the AO with the direction that the Assessing Officer may proceed with the assessment after getting the issue relating to the jurisdiction determined in accordance with the provisions of Section 124(2) of the I.T. Act. Appeal filed by the assessee is allowed statistically, whereas the appeal of the Revenue stands dismissed.
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