2020 (7) TMI 251 - HC - Income Tax

Reopening of assessment u/s 147 - transfer of the assessment proceedings initiated under Section 148 Jurisdiction of Assessing Officers - shift of assessee's residence - HELD THAT - It is a question of fact that the petitioner though shifted his residence in the year 2015 from Alappuzha to Ernakulam and issuance of Pan card Ext.P1 in the year 2019 is a testimony of the same for the remaining assessment years of course in case of any dispute with income tax the jurisdiction would be vested with the Income Tax Authority, Ernakulam. AO is required to record the satisfaction as per the provisions of sub section (2) before the assessment is made. It is a matter of record that the request Ext.P4 is dated 04.01.2020, ie within few days of receipt of the reassessment notice dated 30.12.02019 under Section 148 of the Income Tax Act. Equity can be addressed, by directing 3rd respondent to take a call on the request Ext.P6 under sub section (4) of Section 124 or any other provisions of the Act regarding the jurisdiction of assessment or reassessment proceedings, by taking into consideration observation, herein above and the relevant provisions of the Act. Let this exercise be under taken within a period of one month from the receipt of a copy of this judgment after affording opportunity of hearing to the petitioner and by passing a speaking order. It is made clear that the 3rd respondent would take into consideration whether the claim made by the petitioner would or would not fall under sub section (2), when the original assessment 139 has been made or otherwise.

Summary

Issues Involved:
Transfer of assessment proceedings under Section 148 due to change in residence jurisdiction and non-disclosure of relevant facts.

Issue 1: Transfer of Assessment Proceedings
The petitioner, an individual assessee, requested the transfer of assessment proceedings from Alappuzha to Ernakulam due to a change in residence. The petitioner argued that the Income Tax Authorities in Ernakulam should consider the convenience of the assessee, as per Section 124(1) of the Income Tax Act. The opposing party relied on Section 124(3) which restricts challenging the jurisdiction of an assessing officer after a specified period. The petitioner's failure to disclose previous assessment details was also raised as a reason for rejection. The petitioner's counsel argued that Section 148 proceedings should be treated similarly to Section 139 proceedings, allowing for the transfer request.

Issue 2: Interpretation of Relevant Sections
The court examined Section 124 and Section 148 of the Income Tax Act to determine the jurisdiction of assessing officers and the process for reassessment. It was noted that under Section 124(3), an assessee cannot dispute jurisdiction after a specified period unless specific objections are raised. The court analyzed whether the proceedings under Section 148 for reassessment should be treated akin to Section 139 proceedings for filing returns. The petitioner's non-disclosure of reassessment notices for subsequent years was highlighted, leading to a debate on the assessing officer's obligation to provide reasons for jurisdictional references.

Issue 3: Equitable Resolution
After considering the arguments and provisions of the Act, the court emphasized the importance of addressing equity in the matter. The court directed the assessing officer to review the transfer request under Section 124(4) within a month, taking into account the petitioner's submissions and issuing a detailed order. The court clarified that ongoing proceedings should not conclude until the transfer request is duly considered within the specified timeframe, ensuring fairness and procedural adherence.

In conclusion, the court recognized the need to balance legal provisions with equitable considerations, directing the assessing officer to review the transfer request promptly and make a well-reasoned decision. The judgment aimed to uphold procedural fairness and ensure that the petitioner's request for transfer of assessment proceedings due to a change in residence jurisdiction was appropriately addressed within the framework of the Income Tax Act.