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2018 (6) TMI 1733 - AT - Income TaxValidity of the notice u/s. 143(2) - issue of notice by AO not having jurisdiction to assess assessee in terms of the territorial area assigned to him u/s. 120 - transfer of the assessee’s return by ITO, Ward II(3), Jalandhar to another ITO (at Jalandhar, where the assessee’s office is locate - HELD THAT:- The whole purport of law, as we see it, is from the standpoint as to whether any prejudice is caused to the assessee. The transfer of the assessee’s return by ITO, Ward II(3), Jalandhar to another ITO (at Jalandhar, where the assessee’s office is locate, and in fact, the ITO with whom he filed his return) would not make the issue of notice u/s. 143(2) by him on 15.09.2010 (or 21.09.2010) invalid. This is irrespective of whether the said transfer is prompted by the assessee’s objection-as contended by the assessee, or the transfer of the assessee’s PAN to the transferee ITO, as stated by the ld.CIT(A). There is no challenge, nor possibly could be, to the inherent competence of the ITO, Ward II(3) Jalandhar to issue a notice u/s. 143(2), which competence is in fact the same as that of any other ITO at Jalandhar or Kapurthala. Once, therefore, there is a valid assumption of jurisdiction to frame the assessment u/s. 143(3), by service of a valid notice u/s. 143(2) in time, the proceedings are to be taken to their logical conclusion. The assessment by the ITO, Ward IV-(1), Jalandhar, with whom the assessee filed his return, and who received the assessee’s return from ITO, Ward II(3) Jalandhar on 21.07.2011, cannot therefore be faulted with. In fact, no further objection was raised by the assessee, with he rather participating in the assessment proceedings. How, then, could he challenge the jurisdiction of the ITO, Ward IV(1) Jalandhar – with whom he has in fact filed his return for the year, as his AO, in the appellate proceedings. The issue of notices u/ss. 142(1) and 143(2) by ITO, Ward IV(1) Jalandhar on 21.07.2011 is again in consonance with the law which contemplates issue of such notices on change of incumbency or succession in jurisdiction. The same is only an administrative mechanism to accord with the principles of natural justice, with section 129 even granting the assessee the right to insist on being reheard in the matter, i.e., to the extent already heard by the previous officer/s. - Decided against assessee.
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