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2018 (3) TMI 936 - AT - Income TaxReopening of assessment - AO's jurisdiction over the matter - Disallowing deduction u/s 54B - Held that:- ACIT- 1 Agra, who recorded the reasons to believe escapement of income and issued the notice u/s 148 of the Act admittedly did not exercise jurisdiction over the matter. In fact, evidently, this was the reason why the matter was transferred from the ACIT- 1, Agra to the ITO 4(2) Agra. Therefore, the formation of the reasons to believe escapement of income is in direct violation of the provisions of section 147 of the Act. Since the reasons to believe escapement of income in this case were recorded by the AO who did not exercise the relevant jurisdiction, i.e., jurisdiction over the matter, such reasons are non-est, being in flagrant violation of the express provisions of section 147 read with those of section 2(7A) of the Act. - Decided in favour of assessee.
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