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2021 (2) TMI 181 - AT - Income Tax
Validity of assessment - No Notice u/s 143(2) issued - Jurisdiction ITO or DCIT - HELD THAT:- In the remand report, the AO clearly stated that notice u/s 143(2) of the Act was issued by DCIT, Circle-1, Kolkata. The ld. D/R could not controvert the contention of the assessee that no notice u/s 143(2) of the Act was issued by the DCIT-13(1), Kolkata, who completed the assessment.
The income of each of all these four assessee companies which are in appeal before us is below ₹2 lakhs. Thus, as per the CBDT Instruction No. 1/2011, the jurisdiction of these assessees, based on monetary limits lies with the ITO and not with the DCIT. This fact could not be controverted by the ld. D/R. CBDT instructions are binding on all the Income Tax Authorities.
See HILLMAN HOSIERY MILLS PVT. LTD. VERSUS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11 (1) [2021 (2) TMI 26 - ITAT KOLKATA]
The orders are bad in law for the reason that the assessing authority passed the order u/s 143(3) of the Act i.e. DCIT-13(1), Kolkata has not issued a notice u/s 143(2) of the Act and also for the reason that the jurisdiction of these cases lies with the ITO and not the DCIT. Appeals of the assessees are allowed.