Assessment Proceedings Framed by Quoting Wrong Section on Jurisdiction : ITAT Declares Assessment order as Void ab-intio [Read Order]

The Amritsar bench of the Income Tax Appellate Tribunal ( ITAT) quashed the assessment order passed by the assessing officer by quoting the wrong section on jurisdiction and declared the order as void ab-initio. 

Ajay Kumar, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the assessment order framed under section 153A of the Income Tax Act,1961 passed by the assessing officer. 

Rohit Kapoor, the counsel for the assessee contended that pursuant to the requisition under section 132A of the Income Tax Act and a notice under section 153A of the Income Tax Act was issued to the assessee for the six assessment years immediately preceding the relevant assessment year which was bad in eyes of law. 

It was also submitted that the notice issued under section 153A of the Income Tax Act by the assessing officer was bad in the eyes of the law, inasmuch as, no notice under section 153A of the Income Tax Act could be issued and as such the assessment framed in response to notice was illegal, invalid and bad in the eyes of law and the assessment made was liable to be canceled. 

Hitendra Bhauraoji Ninawe, the counsel for the revenue strongly supported the decisions made by the lower authorities. 

The bench observed that Since the assessment year was out of the period of 6 years provided for the assessment according to the requisition under section 132A of the Income Tax Act and hence the notice issued under section 153A of the Income Tax Act to the assessee to file the return of income for the assessment year was invalid.  The two-member bench comprising Dr. M. L. Meena ( Accountant) and Anikesh Banerjee (Judicial) held that the assessment framed under section 153A of the Income Tax Act was a mistake of quoting a wrong section on jurisdiction and defect of mentioning a wrong section on jurisdiction by the assessing officer was not a curable mistake or defect under section 292B of the Income Tax Act and declared as void ab initio while allowing the appeal filed by the assessee

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