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2020 (3) TMI 866 - AT - Income TaxReopening of assessment u/s 147 - Jurisdiction of ITO to issue notice - notice u/s 148 was issued to the legal heir on behalf of the deceased assessee by ITO, Ward-1(4), Jaipur after seeking approval of JCIT, Range-1, Jaipur whereas the jurisdiction over the deceased assessee was with ITO, Ward 2(1), Jaipur under JCIT Range-2, Jaipur - HELD THAT:- ITO Ward 1(4), Jaipur herself has stated that the jurisdiction over the case does not lie with her but with ITO Ward 2(1), Jaipur. The aforesaid communication has been written to the Pr. CIT very next month of issuance of notice on 26.03.2015. Apparently, there was no further communication from the office of ld Pr. CIT and PAN of the deceased assessee was not transferred to ITO Ward 2(1) and continues with ITO Ward 1(4) and having issued the notice u/s 148, she continued with the proceedings and passed the assessment order u/s 147 read with 143(3) of the Act. Therefore, even though notice has been issued by ITO, Ward 1(4), Jaipur but once she is clear that the jurisdiction over the matter lies with ITO, Ward 2(1), Jaipur, merely because the permission has not been received from the ld. Pr. CIT for transfer of PAN, she cannot proceed and pass the assessment order in absence of requisite jurisdiction at first place which is governed by last known residence address of the deceased assessee as mandated by section 124(1)(b) of the Act. Therefore, where there is no dispute that the jurisdiction over the deceased assessee lies with ITO Ward 2(1), Jaipur, the assessment order passed by ITO Ward 1(4) cannot be sustained and set-aside for want of requisite jurisdiction. Where there is no dispute that the jurisdiction over the deceased assessee lies with ITO Ward 2(1), Jaipur, the assessment order passed by ITO Ward 1(4) cannot be sustained and set-aside for want of requisite jurisdiction. Regarding contention of the ld. DR that the assessee has not challenged the jurisdiction within the prescribed time limit provided u/s 124(3) - We find that the assessee has also challenged the service of notice u/s 148 and 142(1) and in any case where the ITO Ward 1(4) herself is clear that the jurisdiction in the case of the decease assessee doesn’t lie with her and lies with ITO, Ward 2(1), Jaipur and has written a letter as earlier as 21.04.2015 to ld. Pr. CIT and there has been no action by the office of ld Pr. CIT till the passing of the assessment order, there is no basis to blame the assessee for filing the late objections as the provisions of section 124(3) comes in play only on satisfaction of provisions of section 124(1) of the Act. We are of the considered view that jurisdiction over the deceased assessee lies with the ITO, Ward 1(4), Jaipur and for want of requisite jurisdiction, assessment order passed u/s 143(3) read with 147 by ITO, Ward 2(1), Jaipur deserves to be set aside. - Decided in favour of assessee.
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