2019 (3) TMI 1996 - HC - Income Tax

Validity of assessment passed by raising an extra demand to be illegal without jurisdiction and violative of natural justice - notice issued by Assistant Commissioner of Income Tax Corporate Circle-1(2) Bhubaneswar - HELD THAT - As established that the jurisdiction is with the Commissioner of Income Tax (OSD) (Exemption). Therefore the notice under Annexure-13 issued by the Assistant Commissioner of Income Tax Corporate Circle-1(2) Bhubaneswar is without jurisdiction. However we are not expressing our opinion on Annexures-1 and 2 since those are appealable orders. Accordingly the notice under Annexure-13 is quashed/set aside. Further it is open for the competent authority to issue appropriate notice to the petitioner in accordance with law. The writ petition is allowed to the extent indicated above.

Summary

Issues: Jurisdiction of the assessing authority, legality of assessment order, violation of natural justice

In the judgment delivered by the High Court, the petitioner challenged the assessment order dated 30.12.2016 for the assessment year 2014-15, which raised an extra demand of Rs.24,96,42,960, as illegal, without jurisdiction, and violative of natural justice. The petitioner contested the orders under Annexure-1 (assessment order), Annexure-2 (demand under Section 156 of the Income Tax Act), and Annexure-13 (notice under Section 143(2) of the Income Tax Act). The affidavit filed by the Joint Commissioner of Income Tax (OSD) (Exemption) confirmed the valid jurisdiction over the assessee for completing the assessment under Section 143(3) of the IT Act. The High Court concluded that the notice issued by the Assistant Commissioner of Income Tax, Corporate Circle-1(2), Bhubaneswar, under Annexure-13 was without jurisdiction. However, the Court refrained from expressing an opinion on Annexures-1 and 2, deeming them appealable orders. Consequently, the notice under Annexure-13 was quashed/set aside, allowing the competent authority to issue a proper notice to the petitioner in accordance with the law. The writ petition was allowed to the extent indicated, with directions to issue an urgent certified copy of the order upon proper application.