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2020 (3) TMI 623 - AT - Income TaxTransfer of cases u/s 127 - assessee submitted that the AO had no jurisdiction to complete the assessment in Kolkata, since the jurisdiction over the assessee was duly transferred u/s 127 to ACIT, Central Circle 2(3), Chennai, CIT Central-II, Chennai - HELD THAT - We note that order under section 127 of the Income Tax Act was issued by the Commissioner of Income Tax, Kolkata-1, on 15.03.2013 whereby the Commissioner transferred the jurisdiction from ITO,Wd-1(4), Kolkata to ACIT Central Circle-II(3), Chennai. The order was passed by the assessing officer Ward-1(4) Kolkata on 24.03.2014, which is without jurisdiction. In assessee s case under consideration, the order under section 127 of the Income Tax Act was issued by the Commissioner of Income Tax, Kolkata-1, on 15.03.2013 whereby the Commissioner transferred the jurisdiction from ITO,Wd- 1(4), Kolkata to ACIT Central Circle-II(3), Chennai. Whereas, the assessment order was passed by the assessing officer Ward-1(4) Kolkata on 24.03.2014, which is without jurisdiction. Even a right decision by a wrong forum is no decision. It is non-existent in the eye of law. And hence a nullity. The assessment order under appeal is therefore no order in the eye of law, hence we quash the assessment order. - Decided in favour of assessee.
Issues Involved:
1. Jurisdiction of the Assessing Officer to complete the assessment. Issue-wise Detailed Analysis: 1. Jurisdiction of the Assessing Officer to complete the assessment: The primary issue raised by the assessee was the jurisdiction of the Assessing Officer (AO) in Kolkata to complete the assessment for the Assessment Year 2008-09. The assessee contended that the jurisdiction over their case had been transferred to the ACIT, Central Circle 2(3), Chennai, as per an order under section 127 of the Income Tax Act, 1961, issued on 15.03.2013. Consequently, the assessment order dated 24.03.2014, passed by the AO in Kolkata, was argued to be without jurisdiction and thus invalid. The assessee's counsel argued that the assessment framed by the AO in Kolkata under sections 143(3)/147/263/144 of the Act was without jurisdiction due to the transfer order. The counsel cited the case of Ramshila Enterprises (P) Ltd, where the Calcutta High Court held that any order passed by an officer who no longer had jurisdiction was a nullity. On the other hand, the Department's representative argued that the assessment by the Kolkata AO was for administrative convenience and did not affect the jurisdiction. The representative referenced the case of Ojasvi Motor Finance Pvt. Ltd, where the jurisdiction transfer occurred after the issuance of notices under section 263, thus not affecting the validity of the assessment. Upon reviewing the submissions, documents, and case laws, the Tribunal noted that the order under section 127 transferring jurisdiction from ITO, Wd-1(4), Kolkata to ACIT Central Circle-II(3), Chennai was issued on 15.03.2013. The assessment order by the Kolkata AO on 24.03.2014 was therefore without jurisdiction. The Tribunal relied on the judgment of the Calcutta High Court in Ramshila Enterprises Private Ltd, which emphasized that any decision by an officer without jurisdiction is non-existent in the eye of law and hence a nullity. The Tribunal concluded that the assessment order passed by the AO in Kolkata was invalid due to lack of jurisdiction following the transfer order under section 127. Consequently, the assessment order was quashed. Conclusion: The Tribunal allowed the appeal of the assessee, quashing the assessment order passed by the AO in Kolkata due to lack of jurisdiction following the transfer of jurisdiction to Chennai. The Tribunal reiterated that even a correct decision by an officer without jurisdiction is a nullity in the eyes of the law.
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