ITO having No Jurisdiction over Assessee cannot issue Notice u/s. 143(2): ITAT declares Assessment proceedings as void ab initio [Read Order]
![ITO having No Jurisdiction over Assessee cannot issue Notice u/s. 143(2): ITAT declares Assessment proceedings as void ab initio [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/05/ITO-jurisdiction-assessee-notice-ITAT-assessment-proceedings-void-ab-initio-Taxscan.jpg "ITO having No Jurisdiction over Assessee cannot issue Notice u/s. 143(2): ITAT declares Assessment proceedings as void ab initio [Read Order]")
Income Tax Appellate Tribunal (ITAT), Kolkata bench consisting of Rajpal Yadav, Vice President and Manish Borad, Accountant Member held that Income Tax Officer (ITO)having no jurisdiction over assessee cannot issue notice u/s. 143(2). The assessee, Anil Kumar Khetawat is an individual who filed his return of income for the year under consideration wherein he declared total income to the...
Income Tax Appellate Tribunal (ITAT), Kolkata bench consisting of Rajpal Yadav, Vice President and Manish Borad, Accountant Member held that Income Tax Officer (ITO)having no jurisdiction over assessee cannot issue notice u/s. 143(2).
The assessee, Anil Kumar Khetawat is an individual who filed his return of income for the year under consideration wherein he declared total income to the tune of Rs.50,28,040/-. The Counsel for the assessee, Sunil Surana for the assessee submitted that as per the Central Board Of Direct Taxes (CBDT) Instruction fixed new monetary limit in Mufassil areas, according to which income above Rs. 15 lacs for ‘non corporate’ assessee’ and Rs.20 lacs for ‘corporate returns’ has to be assessed by ACIT/DCIT and that since Haldia is a Muffasil area and instructions given by the CBDT is binding on the officers of the Department and since the assessee has declared more than Rs. 50 lacs as his returned income, then the scrutiny assessment can be done only by the Assistant Commissioner of Income Tax (ACIT)and not by the ITO who does not have the jurisdiction to do so.
The Tribunal observed “We note that the ACIT by assuming the jurisdiction after the time prescribed for issuance of notice u/s. 143(2) of the Act notice became qoarum non judice after the limitation prescribed by the statute was crossed by him. Therefore, the issuance of notice by the ACIT, Circle-27, Haldia after the limitation period for issuance of statutory notice u/s. 143(2) of the Act has set in, goes to the root of the case and makes the notice bad in the eyes of law and consequential assessment order passed u/s. 143(3) of the Act is not valid in the eyes of law and, therefore, is null and void in the eyes of law. Therefore, the legal issue raised by the assessee is allowed.”
To Read the full text of the Order CLICK HERE
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