TMI Blog2015 (3) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... lso be verified from the record available with the Revenue Department. Since, before us two contradicting statements have been made about the area of jurisdiction and the name of the Assessing Officer of this Assessee, therefore, this contradiction can be resolved by examining the office records of the Revenue Department. This exercise can be undertaken by learned CIT(A) by summoning the jurisdiction recorded of the Revenue Department. - All the Appeals either filed by the assessee or by the Revenue Department may be treated as allowed but for statistical purpose only. - ITA Nos.3903, 3904, 3905/Ahd/2007, ITA Nos.4439/Ahd/2007 & 640, 641, 642, 191, 192/Ahd/2008 & ITA Nos.2369/Ahd/2009 & 2585, 2586, 2587/Ahd/2010 - - - Dated:- 26-2-2015 - Shri Mukul Kr. Shrawat And Shri Anil Chaturvedi JJ. For the Appellant: Smt. Sonia Kumar, Sr.D.R. Shri Vimalendu Verma, CIT-DR. For the Respondent : Shri M.K. Patel, A.R. ORDER Per Bench In all these Appeals the appellant has challenged the validity of the jurisdiction invoked u/s.148 of IT Act. An assessment was made by the AO for A.Y.1998-99 u/s.144 r.w.s. 148 of IT Act vide order dated 29.03.2006; according to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eproduced below: Name and address of the Assessee : Maganbhai Shankarbhai Patel Education Assessment Year : 1998-99 Status : AOP REASON FOR REOPENING THE ASSESSMENT U/S.147 OF THE IT ACT. The assessee has surplus of ₹ 7,19,896/- as per computation of income filed along with the return of income claimed the same as exempt u/s. 11 of the act in view of form 10 filed on 10.1.94 for accumulation of income of the trust. The purpose of the accumulation was stated to be for construction of a library. The contractors to whom the funds had been advanced by the assessee on this account were the main trustees. Further, the work of construction has not been completed even after three years. Also, the construction of a library giving the same on rent cannot be construed as utilization for the object of the trust i.e. advancement of education. Thus, the assessee has not utilized the accumulated funds for the purpose of business hence is liable to be taxed as per the provisions of section 11(2) of the Act. Therefore, I have reason to believe that the income chargeable to tax has escaped assessment. (Manisha Desai) Income Tax Officer Ward-5(1), Baroda 2.1 L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub: Appellate proceedings in the case of M.S. Patel Education Trust Assessment Year 1998-99 - Appeal No.CAB/II-140/06-07 Report regarding Kindly refer to your letter No.BRD/CIT(A)-II/Rem.Report/2006-2007 dated 22/02/2007 on the above subject. 2. In the above case, return of income was filed on 31/10/1998 declaring nil income claiming exemption u/s. 11 and 12 of the Act. The same was processed u/s.143(1)(a) and refund of 5,12,640/-was issued on 15/3/1999. The case was re-opened u/s 147 as a result of revenue audit objection. Notice u/s. 148 was issued and served upon the assessee on 18/08/2004 after recording reasons for the same which was duly approved by the Addl.CIT, Range-5, Baroda u/s.151(2). In response to the notice u/s. 148, return of income was filed on 31/01/2006 declaring total income at Rs.nil. Thereafter, notices u/s.142(1) calling for certain details was issued on 14/11/2005 and 16/11/2006 but the assessee did not comply with the same. Another notice u/s.142(l) was issued on 24/02/2006 but once again nobody attended nor any adjournment was sought. One more no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of few years, the same continued with Range-2, Baroda under the presumption that the trust assessees were still having centralized jurisdiction in Range-2, Baroda, although such trust cases were having different territorial jurisdiction. Since, jurisdiction order after restructuring did not mention anything about centralized jurisdiction of trust cases, the jurisdiction of trust cases automatically rests with the concerned territorial assessing officer. Accordingly, after issue of notice u/s.148 of the Act, the case of the assessee trust was transferred to the ITO, Wd-2(3), Baroda who was having territorial jurisdiction over the case. 3.1 Moreover, it is significant to mention here that the assessee did not take any objection to the issuance of notice u/s.148 by the ITO Ward-5(l), Baroda and had filed the return of income in response to notice u/s.148 in the office of the Addl.CIT, Range-5, Baroda. Also, no objection was raised even against the reassessment proceedings by the ITO, Ward-2(3), Baroda during the course of the reassessment proceedings. In view of the above, the assesse's plea that the issuance of notice u/s.148 of the Act, by the ITO, Ward-5(l), Baroda w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 78. (copy enclosed) 5. The Addl.CIT, Range-5, Baroda has approved the above said proposal of the ITO, Ward-5(l), Baroda vide his letter no. BRD/Addl.CIT/R-5/Appr. u/s.151(2)/04-05 dated 18.08.2004(copy enclosed). Accordingly notice u/s.148 of the IT Act. Issued by the ITO, ward-5(1), Baroda on 18.08.2004 and started the assessment proceedings and case records transferred to the ITO, Ward-2(3), Baroda having the current jurisdiction of the assessee. Submitted for kind perusal. Yours faithfully, Sd/- (H.M. Meena) Income-Tax Officer, Ward-2(3) Baroda. 3.2 Learned Sr.D.R. has also placed before us a jurisdiction chart in the form of an Office Order dated 19th August, 2001 according to which the Assessee s case was with old Ward-2(1) but later on it was declared as Ward-5(1), Baroda as per the order of the concerned office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asses of income except in respect of such cases assessed/assessable under the jurisdiction of Director of Income-tax (Exemption)/Commissioner of Income-tax (CIB) or such cases, as are hereafter assigned under section 127 of the Income-tax Act, 1961, to any other Income-tax authority, and further direct that the Tax Recovery Officer mentioned in Column 2 of the Schedule shall also exercise powers of the Tax Recovery Officer as per Chapter XVIID of the Income-tax Act, 1961 read with Second Schedule thereto in respect of all persons or classes of persons, cases or classes of cases falling within my jurisdiction. This order shall take effect from 01-08-2001. Sd/- (ASHA AGARWAL) Addl.Commisisoner of Income-tax Baroda Range-2, Baroda. Because of the change in the jurisdiction the notices were earlier issued by ITO, Ward-5(1) but the assessment was made by ITO, Ward-2(3), Baroda. He has therefore contested that there was no basis to challenge th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned DR can also be verified from the record available with the Revenue Department. Since, before us two contradicting statements have been made about the area of jurisdiction and the name of the Assessing Officer of this Assessee, therefore, this contradiction can be resolved by examining the office records of the Revenue Department. This exercise can be undertaken by learned CIT(A) by summoning the jurisdiction recorded of the Revenue Department. If he finds that the notices for reopening and the reasons for the reopening were not in line with the officer who has finally passed the assessment order then he is at liberty to accept the claim of the Assessee following the case laws cited hereinabove. Due to this reason, we hereby restore this legal ground to the file of the learned CIT(A) to decide as discussed above. 5. Rest of the grounds are in respect of quantum addition made after rejecting the claim of exemption of this Trust. However, we refrain to decide the merits of the case because in one of the decision of Respected Special Bench pronounced in the case of Rahul Kumar Bajaj, 69 ITD 1, it was held that if an order is held as bad in law passed u/s.147/148 then there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
