2011 (10) TMI 765 - AT - Income Tax

Summary

Issues Involved:
1. Validity of assessment order framed u/s 147 of the Income-tax Act, 1961.
2. Jurisdiction of the Assessing Officer (AO) to issue notice u/s 148.
3. Compliance with mandatory conditions u/s 147 to 153 of the Act.

Summary:

1. Validity of Assessment Order u/s 147:
The assessee challenged the validity of the assessment order framed by the AO u/s 147 of the Income-tax Act, 1961, arguing that no reasons were recorded before issuing the notice u/s 148 and that the mandatory notice u/s 148 was not served. The Tribunal found that the notice u/s 148 was issued by ITO, Ward 19(2), New Delhi, who later transferred the case to ITO, Ward 37(1), New Delhi. The latter completed the assessment without issuing a fresh notice u/s 148, rendering the assessment invalid and without jurisdiction.

2. Jurisdiction of the AO to Issue Notice u/s 148:
The Tribunal held that the ITO, Ward 19(2), New Delhi, did not have jurisdiction over the assessee when the notice u/s 148 was issued. The jurisdiction was with ITO, Ward 37(1), New Delhi, who did not issue a fresh notice u/s 148 before completing the assessment. The Tribunal emphasized that jurisdiction cannot be conferred by implication or consent, citing several precedents, including Ranjeet Singh vs. ACIT and CIT vs. Smt. Anjali Dua.

3. Compliance with Mandatory Conditions u/s 147 to 153:
The Tribunal noted that the mandatory conditions provided under sec. 147 to 153 were not complied with, as the assessment was completed without a valid notice u/s 148. The Tribunal concluded that the assessment order was invalid and without jurisdiction, making other grounds regarding various additions redundant.

Conclusion:
The Tribunal allowed the appeal, declaring the assessment order framed by ITO, Ward 37(1), New Delhi, u/s 144/147 as invalid and without jurisdiction due to the absence of a valid notice u/s 148. The decision was pronounced in the Open Court on 14th October, 2011.