2010 (6) TMI 851 - AT - Income Tax

Summary

Issues involved: Cross appeals filed by the assessee and the revenue against the order dated 30.6.2008 passed by the learned CIT(A) in the matter of an assessment made u/s 143(3)/147 of the Income-tax Act, 1961 for the Assessment Year 2002-03.

Assessee's Appeal (ITA No.2822/Del/2008):

Issue 1 - Validity of Notice u/s 148:
The AO issued a notice u/s 148 based on information received regarding interest subsidy claimed by the assessee. The assessee contended that the notice was invalid as it did not align with the reasons recorded u/s 148. The CIT(A) upheld the validity of the notice, stating that the inadvertent mention of the wrong section in the reasons did not render the notice invalid. The Tribunal noted that the notice issued by the AO in Jammu, who lacked jurisdiction over the assessee, was without jurisdiction. Consequently, the assessment made by the AO in Delhi was deemed void ab initio and without jurisdiction. The Tribunal canceled the assessment, allowing the AO to initiate fresh proceedings u/s 147.

Issue 2 - Other Grounds Raised by Assessee:
Since the assessment was deemed illegal and void, the Tribunal did not adjudicate on the other grounds raised by the assessee in its appeal.

Revenue's Appeal (ITA No.2861/Del/2008):
The revenue's appeal regarding certain additions deleted by the CIT(A) was considered redundant in light of the Tribunal's decision on the assessee's appeal. As the assessment was found to be without jurisdiction, the revenue's appeal was dismissed as infructuous.

The Tribunal, comprising B. C. Meena (Accountant Member) and C. L. Sethi (Judicial Member), allowed the assessee's appeal, canceling the assessment due to lack of jurisdiction. The revenue's appeal was dismissed as infructuous. The decision was pronounced on 30th 2010.