ITAT quashes Re-Assessment proceedings opened by AO without Jurisdiction [Read Order]

The Income Tax Appellate Tribunal Delhi consists of Challa Nagendra Prasad, Judicial Member held that the reassessment proceedings conducted by an Assessing Officer having no jurisdiction, are unjust and hence liable to be quashed.

This appeal is filed by the assessee against the order of the Commissioner of Income Tax (CIT). The assessee, Kamlesh Kumar Agarwal (through Legal Heir Smt. Lakshmi Agarwal)) in the grounds of appeal challenged the very jurisdiction of the AO in reopening the assessment u/s 147 of the Act apart from various other legal grounds as well as grounds on merits.

The Counsel for the Appellant (Rakesh Gupta) submitted that the Assessing Officer who assumed jurisdiction to reopen the present assessment was not the AO who was having jurisdiction over the assessee. The assessee also requested reasons for reopening of assessment by initiating proceedings u/s 148 and since the notice for reopening of assessment was issued by a non-jurisdictional authority the reassessment proceedings are invalid and, the assessment order passed in pursuance of such notice is a nullity.

In M.I. Builders Pvt. Ltd. vs. ITO  the Tribunal held that when the initiation of reassessment proceedings was made by the non-jurisdictional Assessing Officer the assessment made pursuant to such notice is invalid.

The Tribunal observed that” the AO did not comply with the procedure as laid down by the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Pvt. Ltd. making the assessment as bad in law. Therefore, in view of the above discussion, I hold that the reassessment made by the AO is bad in law, and accordingly, the reassessment order is quashed. As the reassessment was held to be bad in law on the preliminary grounds and the very jurisdiction of initiation of proceedings u/s 148 of the Act the other grounds raised I.T.A.No.1057/Del/2017 14 by the assessee are not gone into as they become academic at this stage”

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