TMI Blog2015 (9) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has transferred the file to the concerned Assessing Officer, i.e., Income-tax Officer V having jurisdiction over the assessee. The Income-tax Officer V has not issued any notice under section 148 of the Act in order to assume jurisdiction to complete the assessment under section 147 of the Act. He has proceeded further on the basis of the notice issued under section 148 of the Act by a designated officer. Since the notice under section 148 of the Act was issued by an officer not having jurisdiction over the assessee, the notice itself is bad and invalid. Therefore, the assessment framed consequent thereto also deserves to be quashed. - Decided in favour of assessee. - ITA No.89 & 90/LKW/2015 - - - Dated:- 16-4-2015 - SHRI SUNIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause merely on the basis of AIR alone no proceedings under section 147/148 can be initiated, such proceedings initiated are void ab initio, the reassessment framed be annulled. 5. Because the assessee having filed the return of income along with tax audit report on February 17, 2012 prior to the framing of the reassessment under section 147 the Assessing Officer was not justified in ignoring the same and framing the assessment ex parte. 6. Because necessary compliance having being made in response to notices issued under section 142(1) there was no reason to frame the assessment ex parte. 7. Because the Assessing Officer has failed to appreciate the facts and circumstances of the case and has arbitrarily made in addition of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice issued under section 148 of the Act with the submission that this notice was issued by the Income-tax Officer-IV(1) on the basis of AIR information received on November 18, 2011. Copy of the notice is available at page 56 of the compilation of the assessee. Besides queries, notice under section 142(1) of the Act were also issued by the said Income-tax Officer-IV(1), Lucknow for completing assessment under section 147 read with section 143 of the Act. The assessee has raised an objection before the Assessing Officer through letter dated February 23, 2012 stating therein that the Income-tax Officer-IV(1) is not having jurisdiction over the assessee. 5. The jurisdiction over the assessee lies with the Income-tax Officer, Range V, Luckno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red a proposed assessment, was having jurisdiction over the assessee. Accordingly the assessment record was produced and a specific query was raised from the learned Departmental representative to explain as to whether there was any circular of the Central Board of Direct Taxes conferring jurisdiction upon the designated officer receiving information under AIR to issue notice under section 148 of the Act to all the assessees with respect to whom he received information, the answer of the learned Departmental representative was in the negative, as he could not lay his hand on such type of circular of the Central Board of Direct Taxes. 8. During the course of hearing, it has been emerged that one of the officers was designated to collect A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so deserves to be quashed. Since nothing is placed before us to substantiate that the notice under section 148 of the Act was issued by the competent officer, we hold the notice under section 148 of the Act issued to the assessee as invalid and therefore, the assessment framed consequent thereto is quashed. Since the assessment is quashed, the additions made therein are set aside. Accordingly, the appeal of the assessee is allowed. I. T. A. No. 90/LKW/2015 : 9. This appeal is preferred by the assessee against the order of the learned Commissioner of Income-tax (Appeals) confirming the penalty levied under section 271(1)(b) of the Act at ₹ 40 lakhs. 10. Since the assessment itself has been quashed in the foregoing paras, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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