ITAT Quashes Assessment Orders since Competent Authority omitted to Issue Scrutiny Notices [Read Order]

ITAT - Exemption - Taxscan

The Income Tax Appellate Authority ( ITAT ), Kolkata has set aside the assessment orders passed against the Lexmark International (India) Pvt Ltd, by finding that the authority who passed the scrutiny notices under section 143(2) of the Income Tax Act had no jurisdiction to pass the same and the authority who completed the Assessment did not have issued a valid scrutiny notice.

In the instant case, the regular assessment against the assessee was framed by the DCIT/ACIT, Cir-14(1), Kolkata in furtherance to CBDT’s notification dated 22.10.2014 and the CIT(A)-4, Kolkata’s order dated 15.11.2014. Relevant sec 143(2) notices dated 13.09.2012, 20.08.2013 and 04.09.2014 (assessment year wise) have been issued to the assessee by the DCIT/ACIT, Circle-II(4), Chennai.

After analyzing the fact of the case, the Tribunal observed that the DCIT/ACIT, Circle-II(4), Chennai lacked jurisdiction to issue the sec.143(2) notices. The assessee duly brought on record its objections to this effect before the Assessing Officer in its letter dated 08.10.2014 (page 59 to 60 of the paper book).

“All this proved to be a futile exercise as the Assessing Officer framed assessment going by the earlier scrutiny notice(s) only and rejected the said jurisdictional plea. We accordingly conclude in view of the above stated judicial precedents and facts on record that all the three impugned assessments are non-est in the eyes of law since the DCIT/ACIT, Circle-11(4), Chennai issuing the section 143(2) notice(s) did not have jurisdiction and the assessing authority in Kolkata did not issue such scrutiny notices. We quash all these three assessments therefore for this precise reason alone. The assessee succeeds in identical legal ground challenging validity of assessments in these three assessment years. Its latter substantive issue on merits challenging correctness of “ALP” adjustment (supra) is rendered academic. The assessee’s instant later three appeals being ITA Nos. 72/Kol/2016, 235 and 2058/Kol/2017 are accepted therefore,” the Tribunal said.

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