PAN of Assessee Transferred to Another Place: Delhi HC quashes Assessment Order as without Jurisdiction [Read Order]

PAN - Assessee - Delhi HC - Assessment Order - Jurisdiction - Taxscan

A division bench of the Delhi High Court comprising Justice Manmohan ands Justice Dinesh Kumar Sharma has quashed an assessment order by observing that the PAN of the assessee is transferred to another place and no order under section 127 of the Income Tax Act was passed.

Earlier in 2019, the High Court had directed the Assessing Officer to decide the issue of jurisdiction raised by the petitioner. However, department submitted that no decision on the issue of jurisdiction has been taken by the respondent no.3 till date. He points out that on 09th May, 2022, the officer had sent an email to DCIT(IT)- 2(2)(1), New Delhi, requesting him to provide a copy of the order under Section 127 of the Act. They further cotended that the DCIT(IT)- 2(2)(1), New Delhi, had replied to the said email on 11th May, 2022 stating therein that no order under Section 127 of the Act is available.

As per section 127, the Director General or Chief Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more Assessing Officers subordinate to him.

It was contended that no order under Section 127 of the Act has been passed. He also states that PAN of the petitioner/assessee was transferred to Mumbai on 14th November, 2018 and it was transferred back to Delhi on 23rd September, 2019.

The division bench has held that “Keeping in view the fact that no transfer order has been passed under Section 127 of the Act, the impugned notice dated 30th March, 2019 issued by respondent no.3 is without jurisdiction. Consequently, the notice dated 30th March, 2019 is quashed and the present writ petition along with pending application stands disposed of. If the law permits the respondents/Revenue to take further steps in the matter, they shall be at liberty to do so. Needless to state that if and when such steps are taken and if the petitioner has a grievance, it shall be at liberty to take the remedies in accordance with law.”

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