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2022 (8) TMI 573 - AT - Income TaxValidity of Reopening of assessment u/s 147 - issuance of reassessment notice by the Assessing Officer, who has no jurisdiction to assess the assessee - HELD THAT:- If the AO, who had jurisdiction over the assessee completes assessment u/s.143(3) of the Act, on the basis of notice issued by the non-jurisdictional Assessing Officer is bad in law and void ab initio. Although, DR justified assessment order passed by the AO having jurisdiction over the assessee on the basis of 148 notice issued by non-jurisdictional AO in light of provisions of section 124(3) and 124(5) of the Act, we do not find any substance in the arguments advanced by the learned DR for simple reason that section 124(5) deals with powers of the AO in respect of income accruing or arising or received within the area, if any, such powers can be derived with by virtue of direction or order issued under sub-section (1) or (2) of section 120 of the Income Tax Act, 1961. If we go by said provisions of the Act, then, case of the assessee clearly lies with the jurisdiction of the ITO, Ward 4, Puducherry, but not with the ITO., Ward-1(1), Puducherry. Therefore, when the ITO, Ward-1(1), Puducherry does not have jurisdiction over the assessee, he ought not to have issued notice u/s.148 of the Income Tax Act, 1961. Having issued notice u/s.148 and transferred case to jurisdiction officer, the ITO, Ward-4(1), the incumbent Assessing Officer should have started case by issue of fresh notice u/s.148 or section 143(2) of the Act or notice u/s.129 of the Act to assume jurisdiction on change of incumbent of office. In this case, the Assessing Officer, who completed assessment u/s.144 r.w.s 147 of the Act has not issued any notice and thus, assessment framed on the basis of 148 notice issued by non-jurisdiction officer is invalid and liable to be quashed. Hence, we quash reassessment order passed by the Assessing Officer u/s.144 r.w.s147 of the Income Tax Act, 1961, dated 10.03.2016. Assessee appeal allowed.
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