2022 (5) TMI 1505 - HC - Income Tax

Notice issued by non-jurisdictional Assessing Officer - Validity of notice issued by DCIT Circle 3(1)(2) (International Taxation) Mumbai - Transfer of case u/s 127 - PAN of the petitioner/assessee was transferred to Mumbai on 14th November 2018 and it was transferred back to Delhi on 23rd September 2019 - HELD THAT - Keeping in view the fact that no transfer order has been passed under Section 127 of the Act the impugned notice dated 30th March 2019 issued by respondent no.3 is without jurisdiction. Consequently the notice dated 30th March 2019 is quashed and the present writ petition along with pending application stands disposed of. If the law permits the respondents/Revenue to take further steps in the matter they shall be at liberty to do so.

Summary

Issues:
Challenge to notice under Section 148 of the Income Tax Act, 1961 for Assessment Year 2012-13 based on jurisdiction of the Assessing Officer.

Analysis:
The petitioner challenged a notice dated 30th March, 2019 issued by a non-jurisdictional Assessing Officer in Mumbai under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2012-13. The petitioner argued that the Assessing Officer in Mumbai did not have the authority to exercise power over them. The respondent was directed to decide on the issue of jurisdiction by a previous Division Bench, but as of the recent hearing, no decision had been made. The respondent had requested an order under Section 127 of the Act from the Delhi office, which was not provided, leading to uncertainty regarding jurisdiction.

The respondent office in Delhi confirmed that no order under Section 127 of the Act could be traced regarding the transfer of the PAN to Mumbai. It was noted that the PAN was transferred to Mumbai on 14th November, 2018, and then back to Delhi on 23rd September, 2019. As no transfer order under Section 127 was found, the High Court determined that the notice issued by the non-jurisdictional Assessing Officer in Mumbai was without jurisdiction. Consequently, the notice dated 30th March, 2019 was quashed, and the writ petition was disposed of. The court allowed the Revenue to take further steps if permitted by law, with the petitioner retaining the right to seek remedies if needed in the future.