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TMI Blog2016 (7) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... on dated March 25, 2015 granted by the learned Additional Commissioner thereon, notice dated August 14, 2015 (exhibit "I") issued by respondent No. 2 and impugned order dated September 16, 2015 (exhibit "J") passed by respond ent no. 2 recording reasons to believe under sections 147 and 148 of the Income-tax Act are without jurisdiction, competence and barred by limitation. 2. We have heard learned counsel for respective parties at length and further perused the copies of the impugned notices and orders as well as other documents referred to during the course of submissions. 3. Brief facts leading to filing of petition are as under : (a) The petitioner herein claims to be shares sub-broker. He had filed return of income for the assessment year 2010-11 on September 27, 2010 disclosing taxable income of Rs. 1,81,41,820. The said assessment was not accepted by the Income-tax Department and selected for manual scrutiny. Since the assessment amount was within the competence of the Deputy Commissioner of Income-tax, file was assigned to the Deputy Commissioner of Income-tax, i.e., respondent No. 2. Notice under section 143(2) of the Income-tax Act, 1961 (hereinafter shall be referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner for Income-tax for seeking necessary approval under section 151(1) of the said Act to issue notice under section 148 of the Income-tax Act, 1961. The proposal for granting necessary approval was submitted on March 23, 2015 by respondent No. 3 to the Additional Commissioner of Income-tax, Range-I, Jalgaon. Vide order dated March 25, 2015, the Additional Commissioner of Income-tax, Range-I, Jalgaon, pleased to grant sanction to reopen the assessment of the petitioner for the assessment year 2010-11 and issuance of notice under section 148 of the Income-tax Act, 1961, after recording the reasons. After receiving the sanction from the Additional Commissioner of Income-tax, the respondent No. 3 issued notice under section 148 of the Income-tax Act, 1961 to the petitioner on March 25, 2015 and called upon the petitioner to submit a return in the prescribed proforma of his income for the assessment year 2010-11. The petitioner has complied with the requisition vide letter dated April 22, 2015 and further requested to provide certified copy of the reasons recorded for issuance of notice under section 148 of the Income-tax Act, 1961 so as to enable him to raise objections. On June 26, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes under the provisions of Income-tax Act as the case in question falls under his jurisdiction. It is submitted that, the assessment of the subsequent period, i.e., 2011-12 and onwards wherein the petitioner had disclosed the income below Rs. 10.00 lakhs, finalised by respondent No. 3 âEUR" as Assessing Officer of concerned ward. For the assessment year 2010-11, the petitioner disclosed taxable income of Rs. 1,81,41,820 which was more than the pecuniary jurisdiction vested with respondent No. 3-the Assessing Officer. Therefore, the case of the petitioner was assigned to the Deputy Commissioner of Income-tax, Jalgaon, as an Assessing Officer. The Commissioner of Income-tax-2, Nashik, in exercise of powers under section 127 of said Act, transferred the case of the petitioner to the file of the Joint Commissioner of Income-tax, Range-I, Jalgaon, vide order dated February 9, 2012 for administrative convenience. The Commissioner of Income-tax has specifically mentioned in the order dated February 9, 2012 that transfer order shall remain in force with effect from February 9, 2012 to March 31, 2013 for the assessment year 2010-11. In this background, it is submitted that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Rs. 1.00 crore, respondent No. 3 transferred the proceedings to the file of the Deputy Commissioner of Income-tax, Circle-I, Jalgaon, as contemplated under section 127 of the Income-tax Act, 1961 and now the same is dealt with by the Deputy Commissioner of Income-tax, Circle-I, Jalgaon. The preliminary objection raised by the petitioner was also dealt with and decided by the Deputy Commissioner of Income-tax. It is, therefore, submitted that there is no illegality in issuing the notice under section 148 of the Income-tax Act, by respondent No. 3 as well as impugned order passed by respondent No. 2. 6. We have carefully considered the submissions advanced in the light of the relevant provisions of the Income-tax Act and copies of the relevant documents placed on the record by the respective parties as well as affidavit-in-reply filed by the respondents. On due appreciation of submissions advanced, we are of the view that there is no merit in the submissions advanced that the impugned notices are illegal and bad in law. There is no dispute as to the fact that the basic jurisdiction, i.e., territorial and pecuniary jurisdiction to entertain case of the petitioner vests with respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income has been during assessment year 2010-11, respondent No. 3 submitted the file for seeking necessary approval under section 151 of the said Act to issue notice under section 148 of the Income-tax Act, 1961. On due consideration of the reasons recorded by the Assessing Officer and material placed for consideration the Additional Commissioner of Income-tax, Range-I, Jalgaon, passed order under section 151(2) of the Income-tax Act and pleased to grant sanction to reopen the assessment of the petitioner for the assessment year 2010-11 as well as to issue notice under section 148 of the Income-tax Act, 1961. Pursuant to notice dated March 25, 2015, issued under section 148 of the said Act, the petitioner appeared on April 22, 2015 and filed the copy of return of income for the assessment year 2010-11. In response to the notice dated March 25, 2015, the petitioner has not raised any objection as to the jurisdiction of respondent No. 3 to issue such notice. The petitioner requested for providing the copy of reasons recorded for issuance of notice under section 148 of the Income-tax Act, 1961 and the copy of order passed under section 151 of the said Act so as to enable him to ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has escaped certain amount from assessment within the meaning of third proviso to Explanation 2(c)(i) to section 147 of the said Act. In the notice it is also mentioned that necessary approval has been granted by the Additional Commissioner of Income-tax for issuing such notice. The petitioner has responded to the said notice dated March 25, 2015 on April 22, 2014. However, no objection as to jurisdiction is raised. The objection as to the jurisdiction has been raised for the first time by representation dated September 7, 2015. Thus, it is amply clear that within the period of 30 days of issuance of notice under section 148 of said Act, no objection as to the jurisdiction was raised by the petitioner. By the notice dated June 26, 2015 issued by respondent No. 3 under section 142(1), respondent No. 3 called upon the petitioner to submit his return on July 11, 2015. The objection as to the jurisdiction was first time raised on September 7, 2015. As provided under sub-section (3) of section 124 of the said Act, no person is entitled to call in question the jurisdiction of an Assessing Officer after the expiry of the time allowed by the notice issued under section 148. Section 124 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation, so also notice was issued by the Assessing Officer having territorial jurisdiction to deal with the case of petitioner. It is nowhere the case of the petitioner that respondent No. 3 is not the Assessing Officer for the petitioner. So also the assessment of the period 2011-12 onwards are dealt with and finalised by the Income-tax Officer, Ward No. 1, Jalgaon. 12. As discussed in the foregoing paras, respondent No. 3 had issued the notice under section 148 of the said Act after seeking necessary approval under section 151 of the said Act. The proceeding is already transferred by respondent No. 3 to the Deputy Commissioner of Income-tax, who is vested with the jurisdiction to deal with the matters having valuation more than 10.00 lakhs. The objections raised by the petitioner also decided by the Deputy Commissioner of Income-tax, who holds the territorial and pecuniary jurisdiction to make the reassessment of the case of the petitioner. The case is still under consideration of the Deputy Commissioner of Income-tax. The Joint Commissioner, who has assessed income for the assessment year 2010-11 and dealt the case, as the file was transferred to him from the file of the Depu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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