TMI Blog2022 (6) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... dings and allow the legal ground No. 1 raised by the assessee. - ITA No. 1136/Kol/2019 - - - Dated:- 26-5-2022 - Shri Rajpal Yadav, Vice President (KZ) And Shri Shri Manish Borad , Accountant Member For the Appellant : Sunil Surana, FCA, Ld. AR For the Respondents : Anand Kumar Singh, Addl. CIT, Ld. DR ORDER Per Manish Borad , AM This appeal of the assessee for the assessment year 2015-16 is directed against the order of ld. Commissioner of Income-tax (Appeals)-09, Kolkata dated 12-03-2019, which is arising out of the assessment order framed u/s. 143(3) of the Income Tax Act dated 22-09-2017 passed by Assistant Commissioner of Income Tax, Circle-31, Kolkata. 2. The assessee has raised the following grounds of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice issued u/s. 143(2) of the Act is issued by the ITO, Ward 34(2), Kolkata. Since valid notice u/s. 143(2) of the Act was not issued, the assessment proceedings deserves to be quashed. The Ld. Counsel for the assessee also relied on written submissions placed on record. 4. Per contra, on the legal issue the Learned Departmental Representative vehemently argued supporting the orders of the lower authorities. 5. We have heard the rival contentions and perused the records placed before us. Admittedly, the assessee is an individual residing at Kolkata and income of Rs. 91,71,740/- was declared in the return for the AY 2015-16 filed on 25-08-2015. Notice for scrutiny issued u/s. 143(2) of the Act dt. 29-07-2016 by the ITO, W-34(2), Kolka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of taxpayers, especially from mofussil areas, that the existing monetary limits for assigning cases to ITOs and DCs/ACs is causing hardship to the taxpayers, as it results in transfer of their cases to a DC/AC who is located in a different station, which increases their cost of compliance. The Board had considered the matter and is of the opinion that the existing limits need to be revised to remove the abovementioned hardship. An increase in the monetary limits is also considered desirable in view of the increase in the scale of trade and industry since 2001, when the present income limits were introduced. It has therefore been decided to increase the monetary limits as under: Income Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his return of income cannot be assessed by the ITO as per the CBDT circular (supra). From a perusal of the assessment order, it reveals that the statutory notice u/s. 143(2) of the Act was issued by the then ITO, Ward-1, Haldia on 06.09.2013 and the same was served on the assessee on 19.09.2013 as noted by the AO. The AO noted that since the returned income is more than Rs. 15 lacs the case was transferred from the ITO, Ward-1, Haldia to ACIT, Circle-27 and the same was received by the office of the ACIT, Circle-27, Haldia on 24.09.2014 and immediately ACIT issued notice u/s. 142(1) of the Act on the same day. From the aforesaid facts the following facts emerged: i) The assessee had filed return of income declaring Rs. 50,28,040/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT issued statutory notice which was beyond the time limit prescribed for issuance of notice u/s. 143(2) of the Act. We note that the ACIT by assuming the jurisdiction after the time prescribed for issuance of notice u/s. 143(2) of the Act notice became quorum non judice after the limitation prescribed by the statute was crossed by him. Therefore, the issuance of notice by the ACIT, Circle-27, Haldia after the limitation period for issuance of statutory notice u/s. 143(2) of the Act has set in, goes to the root of the case and makes the notice bad in the eyes of law and consequential assessment order passed 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. Therefore, the legal iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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