ITAT quashes Assessment Notice not issued by Jurisdictional AO [Read Order]

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT), quashed assessment notice on the ground that it was not issued by the jurisdictional Assessing Officer (AO).

The assessee, Ballu Singh, has raised question of jurisdiction of proceedings which goes to the root of any proceedings.

It is well settled that initiation of proceedings by an Authority which has no jurisdiction would vitiate the order passed in consequence to such proceedings. The assessee has relied on various case laws on the validity of the proceedings.

During the course of hearing, the Revenue was asked to produce the order conferring the jurisdiction on the Assessing Officer who passed the impugned assessment order and also a report from the Assessing Authority in this regard.

The Counsel for the assessee submitted that on the facts and circumstances of the case, the Assessing Officer has erred in law while issuing notice under Section 143(2) of the Income Tax Act, that is the day of filing of Income Tax Returns in response to notice under Section 148 and notice under Section 143(2) of the Income Tax Act, which is issued in gross violation of the scheme of Section 143(2) of the Income Tax and thus the assessment order passed by the AO liable to be quashed.

The Departmental Representative submitted that the assessee did not inform about the changed address to the Assessing Authority and participated into the reopened assessment proceedings. Therefore, at a such belated stage, raising of question of jurisdiction of Assessing Authority is after thought and just to gain under advantage. The Counsel contended that the assessee has no case.

The Single Member Bench of the Tribunal comprising Kul Bharat, Judicil Member noted that it can be safely inferred that notice under Section 148 of the Income Tax Act was issued by the Authority which has no jurisdiction for the assessee. The Revenue has not brought any order by the Competent Authority whereby the jurisdiction was conferred on the Authority who issued notice under Section 148 of the Income Tax Act.

“In the absence of such order, I hold that assessment order passed by the Assessing Officer was based on invalid notice hence, it also vitiated the assessment order in the light of binding precedents as cited by the assessee. The assessment order is hereby, quashed” the Tribunal opined.

To Read the full text of the Order CLICK HERE

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