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2021 (3) TMI 266 - AT - Income TaxValidity of assessment order - Transfer of case from jurisdiction - Notice u/s 143(2) was issued by the ITO Ward-2, Malegaon, Nasik, Maharashtra whereas Assessment order passed by the ITO Ward-2 (2), Meerut, U.P. - HELD THAT - Material on record clearly prove that ITO at Meerut having jurisdiction over the case of the assessee did not issue notice under section 143(2) upon the assessee within the period of limitation provided under the Act. Therefore, the notice issued under section 143(2) by ITO, Malegaon have no jurisdiction over the case of the assessee was not valid and would not confer any jurisdiction over the case of the assessee. The entire assessment proceedings are, therefore, vitiated because of non-service of jurisdiction notice under section 143(2) within the period of limitation by ITO at Meerut having jurisdiction over the case of the assessee. The assessment order is, therefore, null and void. Since the entire assessment order is null and void and as such the same is liable to be quashed. The Ld. D.R. filed copy of jurisdiction history in the case of the assessee, but, it did not provide how the case of assessee was transferred from Meerut to Malegaon for the assessment year under appeal. It would, therefore, would not support the case of the Revenue. Considering the totality of the facts and circumstances of the case in the light of above decisions relied upon by Learned Counsel for the Assessee, we hold that the entire assessment order is null and void in the absence of issue and service of jurisdictional notice under section 143(2) by the ITO at Meerut having jurisdiction over the case of the assessee. In view of the above, we set aside the Orders of the authorities below and quash the assessment order. Accordingly, appeal of the assessee allowed.
Issues:
1. Jurisdictional issue regarding the notice under section 143(2) and transfer of jurisdiction. 2. Legality of assessment proceedings due to jurisdictional concerns. 3. Adjudication of jurisdictional issue by the CIT(A). 4. Compliance with statutory provisions for jurisdictional notices. Analysis: Issue 1: Jurisdictional issue regarding the notice under section 143(2) and transfer of jurisdiction: The appeal challenged the jurisdiction of the Assessing Officer (A.O.) at Nasik for issuing the notice under section 143(2) instead of the jurisdictional A.O. at Meerut. The contention was that the notice was issued beyond the jurisdiction, as the assessee had no connection with Nasik. The A.O. at Nasik transferred the case to Meerut without following proper procedures under section 127. The CIT(A) did not adjudicate on this issue. Issue 2: Legality of assessment proceedings due to jurisdictional concerns: The A.O. made additions to the income based on discrepancies in TDS statements and deductions claimed under section 80 without proper documentation. The assessee challenged the assessment on the grounds of jurisdictional issues. The CIT(A) deleted the additions on merit but did not address the jurisdictional issue. Issue 3: Adjudication of jurisdictional issue by the CIT(A): The CIT(A) noted the submissions of the assessee regarding the jurisdictional concerns. The assessee argued that the assessment was illegal due to the lack of jurisdictional notice under section 143(2) by the A.O. at Meerut. The CIT(A) did not delve into this issue as the additions were deleted on merit. Issue 4: Compliance with statutory provisions for jurisdictional notices: The counsel for the assessee cited legal precedents where assessments were deemed void due to non-compliance with jurisdictional notices. The Tribunal found that the A.O. at Nasik had no jurisdiction over the case, as the assessee had consistently filed returns at Meerut. The absence of a valid jurisdictional notice under section 143(2) from the A.O. at Meerut rendered the entire assessment null and void. The Tribunal quashed the assessment order based on jurisdictional deficiencies. In conclusion, the Tribunal allowed the appeal of the assessee, declaring the assessment order null and void due to jurisdictional irregularities. The Tribunal emphasized the importance of compliance with statutory provisions for jurisdictional notices and highlighted the significance of proper jurisdiction in conducting assessment proceedings.
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