2023 (1) TMI 899 - AT - Income Tax

Assessment u/s 144B - appropriate authority to have jurisdiction of the present assessee to pass assessment - assessment order passed by AO of NEAC, New Delhi - transfer of case - HELD THAT - Actual jurisdiction of the present assessee for the present assessment year lies with the DCIT, Central Circle 3(1), Chennai by virtue of notification No.119/2020-21 dated 19.03.2011. It is also noted from this very notification that it is the duty of the AO transferring the file shall inform the assessee of the change in jurisdiction and not the other way round. The date of assessment order is 20.04.2021 that means, there is almost one month time gap was available for transferring the file from AO, ITO, Non- Corporate Ward 10(3), Chennai to DCIT, Central Circle 3(1), Chennai. It means that the assessment framed is without jurisdiction because the assessment order passed by AO of NEAC, New Delhi is not having any jurisdiction because the matter was centralized much prior to the date of passing of order on 20.04.2021. The jurisdiction of the assessee w.e.f. 19.03.2021 lies with the DCIT, Central Circle 3(1), Chennai and only, he was authorized to make assessment in the case of assessee for the relevant assessment year.

Summary

Issues:
Jurisdictional issue regarding assessment order passed by the AO of National e-Assessment Centre, Delhi without jurisdiction due to centralized case with Central Circle 3(1), Chennai.

Analysis:

Jurisdictional Issue:
The appeal pertains to an assessment order passed by the AO of National e-Assessment Centre, Delhi for the assessment year 2018-19. The assessee raised an additional ground challenging the jurisdiction of the AO, as the case was centralized with Central Circle 3(1), Chennai. The CBDT's instructions mandated assessment orders through the Faceless Assessment Scheme, 2019, except for cases assigned to central or international charges. A survey under section 133A impounded material, leading to centralization of the case to Central Circle 3(1), Chennai. Notifications highlighted the transfer of cases with impounded material to central charges. The assessment order was passed without jurisdiction, as the case was centralized before the order date. The Tribunal held the assessment by the non-jurisdictional AO as bad in law and quashed it, allowing the assessee's appeal.

In conclusion, the Tribunal's judgment revolved around the jurisdictional issue concerning the assessment order passed by the AO of National e-Assessment Centre, Delhi without jurisdiction due to the case being centralized with Central Circle 3(1), Chennai. The detailed analysis highlighted the relevant notifications, survey actions, and instructions from the CBDT, emphasizing the transfer of cases with impounded material to central charges. Ultimately, the Tribunal deemed the assessment framed by the non-jurisdictional AO as bad in law and quashed it, thereby allowing the appeal of the assessee.