TMI Blog2019 (3) TMI 1941X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of issuing the notice under Sec. 148 of the IT Act was exercising either exclusive or concurrent jurisdiction over the case of the assessee. On the basis of our aforesaid observations, it can safely be concluded that the notice issued under Sec. 148, dated 27.03.2015 by the ITO, Ward- 4, Phagwara who was not vested any jurisdiction over the case of the assessee would have no existence in the eyes of law. We thus in the backdrop of the aforesaid facts are constrained to observe that the assessment framed by the ITO, Ward-3, Phagwara under Sec. 147 r.w.s 143(3) of the IT Act, dated 29.03.2016 in the absence of a valid notice issued under Sec. 148 cannot be sustained and is liable to be quashed. As we have quashed the assessment fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of ₹ 199598/- out of addition of ₹ 400394/- made by the AO and while sustaining the addition he not only ignored the facts but also the judgments relied upon by the assessee. 5. That the orders of the CIT(A) and ITO are against the law and facts of the case 2. Briefly stated, the assessee had filed his return of income for A.Y. 2009-10 on 30.07.2010, declaring total income at ₹ 1,44,950/- and agriculture income of ₹ 3,65,050/- (for rate purpose). The return of income filed by the assessee was processed as such under Sec. 143(1) of the IT Act. Subsequently, on the basis of information received that the assessee had deposited cash of ₹ 33,26,620/- in his SB A/c No. 038000100740233 with Punjab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1,44,951/- on gross receipts of ₹ 7,82,900/-, whereas in the return filed in compliance to notice under Sec. 148 he had shown a net profit of ₹ 1,44,912/- on the gross receipts of ₹ 24,15,200/-. In the backdrop of his aforesaid observations the A.O held a conviction that the deposits amounting to ₹ 33,26,620/- were infact the undisclosed business receipts of the assessee which he had failed to account for in his return of income for the year under consideration. On the basis of his aforesaid deliberations the A.O worked out the suppressed profit @ 12% on the aforesaid undisclosed turnover of ₹ 33,26,620/- and made an addition of ₹ 4,00,394/- in the hands of the assessee. 4. Aggrieved, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vested with any jurisdiction over the case of the assessee. In sum and substance, it was averred by the Ld. A.R that the assessment framed under Sec. 147 r.w.s. 143(3) san any notice having been issued by the jurisdictional A.O could not be sustained and was liable to be struck down on the said count itself. In order to fortify his aforesaid contention the Ld. A.R took us through the assessment order wherein it was clearly stated that after the notice under Sec. 148, dated 27.03.2015 was issued by the ITO, Ward-4, Phagwara, the case was thereafter transferred to the ITO, Ward-3, Phagwara, as the jurisdiction over the case of the assessee was vested with the latter. In the backdrop of his aforesaid contention the Ld. A.R submitted that as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITO, Ward-4, Phagwara, who admittedly had no jurisdiction over the case of the assessee. Infact, the ITO, Ward-3, Phagwara who was vested with the jurisdiction over the case of the assessee had after receiving the case records continued with the proceedings and issued notices under Sec. 143(2)/142(1) to the assessee. We are of the considered view that the assessment framed by the ITO, Ward-3, Phagwara under Sec. 147 r.w.s. 143(3), dated 29.03.2016 in the absence of a valid notice issued under Sec. 148 by him cannot be sustained. In our considered view a notice issued under Sec. 148 by an A.O having no jurisdiction over the case of the assessee would have no sanction of law and an assessment framed on the basis of such invalid notice cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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