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2023 (9) TMI 1409 - AT - Income TaxJurisdiction of income- tax authorities to issue notice u/s 143(2) - ACIT or ITO - Validity of assessment framed by the A.O being ACIT Circle 29, Kolkata - as argued returned income of the assessee was less than Rs. 30,00,000/- the jurisdiction to issue notice u/s 143(2) and to frame the assessment u/s 143(3) was lying with the ITO - HELD THAT:- As decided in Shivam Finance [2023 (6) TMI 1341 - ITAT KOLKATA] it is a settled position of law that for carrying out an assessment proceedings u/s. 143(3) of the Act, statutory requirement of serving a valid notice u/s. 143(2) of the Act is a must and in absence of which the subsequent proceedings become invalid. In the present case before us, it is a fact that assessee has reported total income which exceeds the threshold prescribed in the CBDT Instruction no. 1/2011 read with revised monetary limit for issuing notice by ITO/DCs/ACs. Through this instruction, it stated that in case of metro cities, in case of corporate declared income above Rs. 30 lakh, the jurisdiction of such corporate assessee will lie with the DCs/ ACs. It is not in dispute that as on the date of selecting the case for scrutiny, the very basis for having jurisdiction over the assessee is the returned income which was more than Rs. 30 lakhs and the same was lying with the DCs/ACs but the notice u/s. 143(2) of the Act has been issued by ITO, Ward 49(1), Kolkata. It is true that subsequently the assessment has been framed by ACIT, Circ1e-49, Kolkata but the point in dispute is that on the date of issuing a notice u/s. 143(2) of the Act, whether the ITO, Ward-49(1), Kolkata was having a valid jurisdiction to issue such notice u/s. 143(2) of the Act. We find that Hon'ble jurisdictional High Court in the recent judgment in the case of PCIT Vs. Shree Shoppers Ltd. [2023 (3) TMI 1432 - CALCUTTA HIGH COURT] has decided identical issue in favour of the assessee.
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