TMI Blog2022 (9) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction. As admitted before us that respondent no.1 i.e the ITO-2(1), Moradabad has the territorial jurisdiction over the petitioner, but only objection to the jurisdiction has been raised merely on the ground that on account of pecuniary limit, the proceedings ought to have been initiated by ACIT-2, Moradabad. Once the territorial jurisdiction of respondent no.1 is admitted by the petitioner, there existed no occasion for the Assessing Officer to refer the matter for determination under sub-section (2) of Section 124 before the assessment was made. The facts and legal position as discussed above leave no manner of doubt that the respondent no.1 is the Assessing Officer having territorial jurisdiction over the petitioner. Merely because some pecuniary limit has been fixed for purpose of distribution of work between officers, it would not mean that there shall be inherent lack of jurisdiction of respondent no.1. Therefore, it cannot be said that respondent no.1 lacked inherent jurisdiction while issuing the impugned notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord, it appears that thereafter, the ITO, Ward-2(1) received certain information from DDIT (Investigation), Unit 7(4), New Delhi. It came to light in the search conducted under Section 132A of the Act at the premises of Mr. Mohit Garg and others on 11.03.2018 and in subsequent investigations, which, according to the respondentdepartment revealed that an accommodation purchase entry of Rs.20,32,46,098/- which was not shown by the petitioner. Based on this information, the ITO Ward-2 issued a notice under Section 148 of the Act, 1961 to the petitioner and supplied the reasons recorded for issuance of the notice. The petitioner submitted objection to it which was rejected by order dated 13.09.2021 passed by the ITO-2(1), Moradabad. Being aggrieved, the petitioner has filed the present writ petition, challenging the notice dated 31.03.2021 under Section 148 as well as the order dated 13.09.2021 rejecting the objection. Submission: 6. The only submission of learned counsel for the petitioner is that the impugned notice under Section 148 of the Act, 1961 issued by the respondent No.1 [ITO-2(1)] is without jurisdiction inasmuch as the ITO Ward 2(1) is not the jurisdictional ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax authority lower in rank and any such direction issued by the Board shall be deemed to be a direction issued under sub-section- (1). (2) The directions of the Board under sub section (1) may authorize any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it. (3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other income-tax authority authorized by it may have regard to any one or more of the following criteria, namely:- (a) territorial area; (b) persons or classes of persons; (c) income or classes of income; and (d) cases or classes of cases. (4)Without prejudice to the provisions of sub- sections (1) and (2), the Board may, by general or special order, and subject to such conditions, restrictions or limitations as may be specified therein,- (a)authorise any Principal Director General or Director General or Principal Director or Director to perform such functions of any other income- tax authority as may be assigned to him by the Board; (b)empower the Princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in relation to the said person or class of persons shall be such authority as may be specified in the notification. (iii) Section 124 of the Act, 1961 provides for jurisdiction of Assessing Officers , as under:- Jurisdiction of Assessing Officers 124. (1) Where by virtue of any direction or order issued under subsection (1) or sub-section (2) of section 120, the Assessing Officer has been vested with jurisdiction over any area, within the limits of such area, he shall have jurisdiction - (a) in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situate within the area, and (b) in respect of any other person residing within the area. (2) Where a question arises under this section as to whether an Assessing Officer has jurisdiction to assess any person, the question shall be determined by the Principal Director General or Director General or the Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers conferred by or under this Act on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue of the directions or orders issued under sub-section (1) or sub-section (2) of section 120. 10. Thus, sub-section (1) of Section 120 of the Act, 1961 confers powers on the Board to issue directions to the Income Tax authorities for exercise of powers and performance of the functions by all or any of those authorities. Sub-section (2) of Section 120 permits directions of the Board made under sub-section (1) for authorising any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income tax authorities who are subordinate to it. Sub-section (3) of Section 120 provides for the Board or other income tax authority authorised by it to have regard to one or more of the mentioned four criteria in issuing directions or orders referred to in subsections (1) and (2) of Section 120. The criteria are: (a) territorial area; (b) persons or classes of persons; (c) incomes or classes of income; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) or subsection (2) of section 120. 11. It is undisputed that ITO Ward-2(1), Moradabad who issued the impugned notice dated 31.3.2021 under Section 148 of the Act, 1961 for the Assessment Year 2017-18 and passed the impugned order dated 10.9.2021/13.9.2021 under Section 148A(d) rejecting the objections, is the Assessing Officer within the meaning of Section 2 (7A) of the Act, 1961. 12. The contention of the learned counsel for the petitioner is that since on account of the mandated monetary limit, the impugned order was passed by the ACIT-2, Moradabad, therefore, only ACIT-2, Moradabad could have issued notice under Section 148 of the Act and not the ITO Ward-2(1). We do not find any substance in the submission. 13. Section 120(1) of the Act, 1961 confers powers upon the Income Tax Authorities to exercise all or any of the powers and perform all or any of the functions conferred on, or, as the case may be, assign to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities. Sub-section (3) provides the criteria to be considered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted with jurisdiction over any area, shall have jurisdiction within the limits of such area. Sub-section (5) of Section 124 of the Act, 1961 starts with a non-obstante clause and provides that every Assessing Officer shall have all the powers conferred by or under the Act,1961 on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue of the directions or orders issued under sub-section (1) or sub-section (2) of section 120. Thus, the Assessing Officer vested with jurisdiction by virtue of direction of subsection (1) and (2) of Section 120 shall have all powers conferred by or under the Act, 1961 on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction. 18. It has been admitted before us that respondent no.1 i.e the ITO-2(1), Moradabad has the territorial jurisdiction over the petitioner, but only objection to the jurisdiction has been raised merely on the ground that on account of pecuniary limit, the proceedings ought to have been initiated by ACIT-2, Moradabad. 19. Once the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Act. The term jurisdiction in Section 120 of the Act has been used loosely and not in strict sense to confer jurisdiction exclusively to a specified and single assessing officer, to the exclusion of others with concurrent jurisdiction. It would refer to place of assessment , a term used in the Income Tax Act, 1922. Sub-section (5) to Section 120 of the Act again affirms and accepts that there can be concurrent jurisdiction of two or more assessing officers who would exercise jurisdiction over a particular assessee in terms of the four-fold criteria stated in sub-section (3) to Section 120. Second part of subsection (5) states that where powers and functions are exercised concurrently by Assessing Officers of different classes, then the higher authority can direct the lower authority in rank amongst them to exercise the powers and functions. . . 19 . We would reiterate that sub-section (1) to Section 124 states that the Assessing Officer would have jurisdiction over the area in terms of any direction or order issued under sub-section (1) or sub-section (2) to Section 120 of the Act. Jurisdiction would depend upon the place where the person carries on bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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