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2017 (2) TMI 1253 - HC - Income TaxACIT assuming jurisdiction - Interpretation of provisions of Section 124(3)(a) - ITAT holding that the ACIT could not have completed the assessment by virtue of Section 120(4)(b)? - notification was issued under Section 120(2), conferring powers upon ACIT - Held that:- First, to deal with the issue of jurisdiction under Section 120 by virtue of Section 2(7A), it is not in dispute that the AO includes a DCIT. If so, the notice issued on 15.10.2007, was by a competent officer who always had jurisdiction to do so. At first instance, the assessee could have raised the objection within a month having regard to the notification which existed on 01.08.2007. Secondly, even if for some reason, the assessee were unaware of the notification, it became aware that the ACIT was exercising jurisdiction when it received notice from that official in August 2008. Since that was in continuation of the proceeding by the DCIT it could well have been urged by the assessee within the stipulated time that the said officer, ACIT did not possess jurisdiction. Its failure to do so within the stipulated time, i.e. one month after receipt of notice which was in fact a condition of Section 143(2) proceeding and was treated as such by the assessee precluded it from urging lack of jurisdiction. The assessee, however, contended its omission by not urging this ground before the CIT(A) in the first ground but urging belatedly before the ITAT; precisely the situation which the provision seeks to eliminate. As far as the issue of Section 127 goes, we are of the opinion that having regard to the findings rendered, that question does not arise. The parties are directed to appear before the ITAT for further hearing on the merits on 27.03.2017. - Decided in favour of assessee.
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