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2022 (4) TMI 1118 - AT - Income TaxReopening of assessment u/s 147 - notice under section 148 has been issued by a non jurisdictional AO - HELD THAT:- When it is undisputed fact that jurisdictional AO of the assessee trust is ACIT (Exemption)-2(1), Mumbai and jurisdiction has never been changed or transferred to ITO, Bareli, the very initiation of reopening by ITO, Bareli u/s 147/148 of the Act is bad in law. Because under section 120 & 124 of the Act only ACIT (Exemption), Mumbai is the AO of the assessee trust empowered to frame the assessment, which has never been changed or transferred to ITO, Bareli under section 127 of the Act. It is settled principle of law that when the notice under section 148 of the Act has been issued by a non jurisdictional AO, the ITO Bareli in this case, reassessment by the jurisdictional AO is bad in law and is liable to be quashed, more particularly when assessment of the assessee has admittedly not been transferred to Bareli under section 127 of the Act. So the assessment framed by the ACIT(Exemption)-2(1), Mumbai on the basis of initiation of reopening under section 147/148 of the Act is not sustainable in the eyes of law for lack of jurisdiction being void ab-initio. - Decided in favour of assessee.
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