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2023 (12) TMI 895 - AT - Income TaxJurisdiction of income tax authorities to issue notice u/s 143(2) - ACIT or ITO - Legality of AO jurisdiction to issue and frame the assessment - case of the assessee was selected for scrutiny through CASS on the basis of information received from the Investigation wing to verify suspicious transactions relating to long term capital gain in penny stocks - According to assessee since the income tax return filed by the assessee is less than Rs. 30 Lakh therefore, the jurisdiction to issue notice u/s 143(2) of the Act to frame the assessment was with the ITO and not with the ACIT - HELD THAT:- Since the income tax return filed by the assessee is less than Rs. 30 Lakh therefore, the jurisdiction to issue notice u/s 143(2) of the Act to frame the assessment was with the ITO and not with the ACIT. Ld. Counsel for the assessee submitted that the case of the assessee is squarely covered by the decision of the Hon'ble Jurisdictional High Court in the case of PCIT vs. Shree Shoppers Ltd. [2023 (3) TMI 1432 - CALCUTTA HIGH COURT] Thus as per the relevant statutory provisions not only the territorial jurisdiction but also the pecuniary jurisdiction of the Income Tax Officers/Assessing Officer has been fixed by the CBDT and that if the returned income is less than Rs.30 lacs in case of corporate assessee in metro cities, the jurisdiction to frame the assessment lies to the Income Tax Officer whereas if the returned income is more than Rs.30 lacs, the jurisdiction lies with the concerned ACIT/JCIT. Thus we are of the view that ACIT, Circle-43, Kolkata has no jurisdiction to frame the assessment order and to issue notice u/s 143(2) of the Act. Decided in favour of assessee.
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