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2021 (8) TMI 700 - AT - Income Tax
Reopening of assessment u/s 147 - Jurisdiction of Income Tax Authorities - Power to transfer cases - pecuniary jurisdiction to frame such assessment - reasons for forming belief of escapement of income by the assessee were recorded by the ITO, Ward-23(3), Hooghly and notice u/s 148 of the Act was also issued by the by the ITO, Ward-23(3), Hooghly but the assessment has been framed by the ACIT, Circle-23(1), Hooghly - HELD THAT:- As jurisdiction to transfer case from one Assessing Officer to other Officer lies with the Officers as mentioned in section 127(1) who are of the rank of Commissioner or above. No document has been produced on the file by the Department to show that the case was transferred by the competent authority from ITO, Ward-23(3), Hooghly to ACIT, Circle- 23(1), Hooghly.
There is no document on the file that the ACIT, Circle-23(1), Hooghly had ever recorded any reasons to form belief that the income of the assessee has escaped assessment nor did he issue any notice u/s 147 of the Act. On the other hand, the ITO, Ward-23(3), Hooghly had recorded the reasons for reopening of the assessment and had issued notice u/s 148 of the Act, but did not proceed further with the framing of assessment. Under the circumstances, the assessment framed by ACIT, Circle-23(1), Hooghly, is bad in law on two counts, firstly he did not have any pecuniary jurisdiction to frame the assessment and secondly he himself did not form any belief that the income of the assessee has escaped assessment nor did he issue notice u/s 148 of the Act which was sine qua non to assume jurisdiction to frame to assessment. Decided in favour of the assessee.