2017 (12) TMI 43 - AT - Income Tax

Limitation period for issuance of statutory notice under section 143(2) - ITO jurisdiction of issuing notice - transfer of file to ACIT - Held that:- Notice under section 143(2) of the Act was issued on September 6, 2013 by the Income-tax Officer, Ward-1, Haldia when he did not have the pecuniary jurisdiction to assume jurisdiction and issue notice. Admittedly, when the Income-tax Officer realised that he did not had the pecuniary jurisdiction to issue notice he duly transferred the file to the Assistant Commissioner of Income-tax, Circle-27, Haldia on September 24, 2014 when the Assistant Commissioner of Income-tax issued statutory notice which was beyond the time limit prescribed for issuance of notice under section 143(2) of the Act. We note that the Assistant Commissioner of Income-tax by assuming the jurisdiction after the time prescribed for issuance of notice under section 143(2) of the Act notice became qoarum non judice after the limitation prescribed by the statute was crossed by him. Therefore, the issuance of notice by the Assistant Commissioner of Income-tax, Circle-27, Haldia after the limitation period for issuance of statutory notice under section 143(2) of the Act has set in, goes to the root of the case and makes the notice bad in the eyes of law - Decided in favour of assessee.