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2020 (11) TMI 702 - AT - Income TaxNo mandatory notice u/s 143(2) issued by eligible ITO - ITO jurisdiction to frame the scrutiny assessment u/s 143(3) without issuing notice u/s 143(2) - assessee objected to the jurisdiction of ITO, Ward-3, Shillong to have issued the statutory notice wherein it was stated that the assessee society is in Tezu which is situated in the State of Arunachal Pradesh and ITO, Ward-2, Digboi has territorial jurisdiction u/s 124 - HELD THAT:- It is an admitted fact that the assessment was framed by the ITO, Ward-2, Digboi and that he has not issued notice u/s 143(2) of the Act which is discernible from the order sheet as well as from perusal of the assessment order - scrutiny assessment u/s 143(3) was framed without issuing notice u/s 143(2) by the ITO, Ward-2, Digboi. The legal issue raised before me is no longer res integra. As in Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT] has held that issue / serving notice u/s 143(2) of the Act is sinequa- non before framing of scrutiny assessment u/s 143(3) - Therefore, relying on the said decision of Hon’ble Supreme Court, we allow the legal issue raised by the assessee. PAN jurisdiction of assessee - Coming to the contention of the ld D.R that PAN jurisdiction of assessee was with ITO, Ward-3, Shillong and therefore he issued notice u/s 143(2) of the Act after taking note of CASS in the case of assessee ; and later when he came know that jurisdiction was with ITO, Ward-2, Digboi , he has transferred the case to the jurisdiction of ITO at Digboi and since the assessee has participated in the assessment proceedings, there is no prejudice caused to the assessee. This submission of Ld. D.R cannot be accepted since the statute does not recognize PAN jurisdiction. Jurisdiction recognized by the Act are based on territory, residence, pecuniary, classes of assessee like companies, firms etc. Since the PAN jurisdiction must be an internal arrangement of the Department which does not have the sanction of law and since it is not recognized by the Statute, therefore this contention of the revenue cannot be accepted and so it is rejected. Thus ITO, Ward-2, Digboi could not have framed the assessment order u/s 143(3) without issuing notice u/s 143(2) - Decided in favour of assessee.
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