Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 84 - AT - Income TaxValidity of re-assessment proceedings u/s 147 - non-issuance of notice u/s 148 by DCIT(International Taxation) - AO Dasuya had no jurisdiction to issue the notice u/s 148 when it was duly intimated to the AO, Dasuya and Hoshiarpur that the Assessee is NRE - Transfer of jurisdiction of AO - as submitted that the assessment has been framed by the DCIT (International Taxation) on the basis of the borrowed satisfaction of the ITO, Dasuya instead of himself forming the belief regarding the escapement of income of the assessee - HELD THAT:- ITO Dasuya did not have any jurisdiction over the assessee and, as such, the notice u/s 148 of the Act by the ITO, Dasuya being without jurisdiction was not valid. Though, the fact, that the assessee was a non-resident Indian, was duly mentioned to the ITO, Hoshiarpur and the entire record along with reply of the assessee was transferred to ITO, Dasuya, apart from that the ITO Dasuya also was informed vide separate replies, as mentioned above, that the assessee was a permanent resident of USA, ITO Dasuya, continued to proceed with the re-assessment and issued notices u/s 148 of the Act. The fact that the assessee was an NRI was very much on the record. ITO Dasuya had no jurisdiction to initiate reopening of the assessment by way of issuance of notice u/s 148 of the Act. However, thereafter he transferred the case to ADIT (International Taxation) fully convinced that he himself had no jurisdiction to make assessment in the case of the assessee. Admittedly, no notice u/s 148 of the Act by the DCIT (International Taxation), Chandigarh to the assessee was issued. Since the ITO, Dasuya had no jurisdiction to reopen the assessment, hence, any notice issued by him has no legal validity. So far as the DCIT (International Taxation), Chandigarh is concerned, he admittedly did not issue any notice u/s 148 to the assessee, therefore, the very reopening of the assessment without issuance of notice u/s 148 of the Act by the Assessing officer of the competent jurisdiction, is bad in law. Argument of the Ld. DR that the ITO, Dasuya had transferred the case to DCIT (International Taxation ), Chandigarh and, hence, there was no requirement of issuing of fresh notice u/s 148 of the Act as per the provisions of section 127 (4) - No force in the above contention of the Ld. DR. Firstly, the re-assessment proceedings initiated by the ITO, Dasuya were without jurisdiction and the same were void abinitio, hence, any transfer of such void proceedings to the Assessing officer of competent jurisdiction did not validate his action and the proceedings. Even otherwise, as per the provisions of section 127, ITO, Dasuya himself had no jurisdiction to suo motu transfer the case to the DCIT (International Taxation). Rather, the transfer of the case as per the provisions of section 127 (1) of the Act, can be ordered by the competent authority prescribed in the said provisions - Decided in favour of assessee.
|