2022 (4) TMI 680 - AT - Income Tax

Transfer of case u/s 127 - transferring the jurisdiction from AO, Delhi to AO, Gurugram - HELD THAT - In the absence of the transfer order, as claimed to have been passed by the concerned Ld. Pr.CIT, Delhi on 27.09.2018, assessment order therefore, passed by the Assessing Officer is held to be without authority of law. It is incumbent upon the Revenue to demonstrate the validity of the order passed by the AO at Gurugram in the case of the assessee. The Revenue has on this ground grossly failed to furnish the order passed by the Ld. Pr. CIT u/s 127 of the Act conferring jurisdiction on AO who passed the impugned order. Hence, the assessment order is hereby quashed for want of necessary jurisdiction. However, the Revenue would be at liberty to file an appropriate application if the order of Ld. Pr.CIT, Delhi is traced/ retrieved for recalling of the present order. The appeal of the assessee is allowed.

Summary

Issues:
1. Legal Ground Jurisdictional Issue

Analysis:
1. Legal Ground Jurisdictional Issue:
The appellant contested the assessment order dated 07/12/2018, arguing that the authority completing the assessment did not have the jurisdictional authority to do so. The appellant claimed that the assessment should have been completed by the initiating authority, ITO, Ward 71(1), New Delhi, rather than ITO, Ward 1(5), Gurgaon. The appellant relied on legal precedents to support their argument that jurisdictional issues can be raised before the Tribunal even if not raised earlier. The appellant requested the assessment order to be quashed due to lack of valid jurisdictional authority. The Tribunal examined the issue and found that the transfer order transferring jurisdiction from AO, Delhi to AO, Gurugram was not available with the Revenue. As a result, the Tribunal held that the assessment order passed by the Assessing Officer in Gurugram was without authority of law. The Tribunal emphasized the importance of demonstrating the validity of the jurisdiction-conferring order, which the Revenue failed to do. Consequently, the assessment order was quashed for lack of necessary jurisdiction, with the option for the Revenue to file an application if the order is retrieved. The appeal was allowed based on this ground, without expressing a view on other grounds raised by the appellant.

In conclusion, the Tribunal allowed the appeal of the assessee based on the jurisdictional issue, quashing the assessment order due to lack of proper jurisdiction. The Tribunal highlighted the significance of demonstrating the validity of jurisdiction-conferring orders and emphasized the need for proper authority in completing assessments. The decision provided the Revenue with the opportunity to file an application if the jurisdiction-conferring order is retrieved, maintaining fairness in the proceedings.