TMI Blog2021 (11) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... filed where income declared is only upto ₹ 15 lacs; and the ITO doesn t have the pecuniary jurisdiction to conduct assessment if it is above ₹ 15 lakhs. Above ₹ 15 lacs income declared by a non-corporate person i.e. like assessee, the pecuniary jurisdiction lies before AC/DC. In this case, admittedly, the assessee an individual (non corporate person) who undisputedly declared income of ₹ 20,03,070/- in his return of income cannot be assessed by the ITO as per the CBDT circular (supra). From a perusal of the paper book, it reveals that the statutory notice u/s. 143(2) of the Act was issued by the then ITO, Ward- 4(3), Guwahati on 20.09.2016 and the same was served upon the assessee as noted by the AO in the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal of assessee is allowed on the legal issue, the other grounds raised by the assessee need not to be adjudicated because it is only academic. Therefore, the additional ground raised by the assessee is allowed. - I.T.A. No. 434/Gau/2019 - - - Dated:- 28-10-2021 - Shri P. M. Jagtap, Vice-President (KZ) And Shri A. T. Varkey, JM For the Appellant : Shri Somnath Ghosh, Advocate Shri A. K. Agarwal, FCA For the Respondent : Shri N.T. Sherpa , JCIT, Sr. D.R ORDER Per Shri A.T. Varkey, JM: This is an appeal preferred by the Assessee against the order of Ld. CIT(A)-2, Guwahati dated 30.07.2019 for Assessment year 2015-16. 2. At the outset, the Ld. A.R. of the assessee Shri Somnath Ghosh drew our attention to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 31.01.2011 CBDT has fixed new monetary limit in Mufassil areas, according to which income above ₹ 15 lacs for non corporate assessee and ₹ 20 lacs for corporate returns has to be assessed by ACIT/DCIT. Thus, according to Ld. Counsel, since assessee s principal business is in Moffusil area, the AO should have acted upon the instructions given by the CBDT which is binding on the officers of the Department; and since the assessee has declared more than ₹ 20 lacs as his returned income, then the scrutiny assessment could have been done by only the ACIT/DCIT and not by the ITO who does not have the pecuniary jurisdiction to do so. However, in this case in hand, even though the assessee s return of income is more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITOs DCs/AC Corporate Returns Upto ₹ 20 Lacs Above ₹ 20 Lacs Upto ₹ 30 Lacs Above ₹ 30 Lacs Non- corporate Returns Upto ₹ 15 Lacs Above ₹ 15 Lacs Upto Rs. 20 crores Above ₹ 20 Lacs Metro charges for the purpose of above instructions shall be Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Mumbai and Pune. The above instructions are is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO issued notice under section 143(2) of the Act on 20.09.2016. ii) The ITO, Ward-4(3), Guwahati taking note that the income returned was above ₹ 15 lacs transferred the case to DCIT, Circle-4, Guwahati iii) On 03.03.2017 notice u/s 142(1) was issued by DCIT, Circle-4, Guwahati but did not issue notice u/s 143(2) of the Act within the prescribed time limit and before passing the assessment order u/s 143(3) of the Act. 6. We note that the CBDT Instruction is dated 31.01.2011; and the assessee has filed the return of income on 30.09.2015 declaring total income of ₹ 20,03,070/-. As per the CBDT Instruction the monetary limits in respect to an assessee who is an individual which falls under the category of non corporate re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has set in, goes to the root of the case because the DCIT gets jurisdiction to frame assessment order u/s 143(3) of the Act only thereafter. Ergo, the assessment order passed by the DCIT, Circle-4 u/s. 143(3) of the Act is not valid in the eyes of law and, therefore, is null and void in the eyes of law, and consequently we quash it. Therefore, the legal issue raised by the assessee is allowed. Since we have quashed the assessment and the appeal of assessee is allowed on the legal issue, the other grounds raised by the assessee need not to be adjudicated because it is only academic. Therefore, the additional ground raised by the assessee is allowed. 7. In the result, the appeal of the assessee is allowed. Order is pronounced in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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