9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 277 - AT - Income TaxValidity of reopening of assessment - jurisdiction of notice issuing authority - whether notice wrongly issued by DCIT, Circle 3(1), Haridwar, whereas, the jurisdiction of the assessee lies with ITO, Ward-2(2), Muzaffarnagar? - HELD THAT - As following the proposition rendered in the case of PCIT vs. Mohd. Rizwan 2017 (3) TMI 1792 - ALLAHABAD HIGH COURT no hesitation to held that the AO having jurisdiction over the assessee is only validly entitle to initiate reassessment proceeding u/s. 147 of the Act and to issue notice u/s. 148 of the Act and consequent thereof is eligible to pass reassessment order on conclusion of proceedings. Since in the present case AO who is issued notice u/s. 148 was not having jurisdiction over the assessee and the AO having jurisdiction over the assessee i.e. ITO Ward 2(2) Muzaffarnagar not issued any notice u/s. 148 of the Act. It is also pertinent to mention that their Lordship also considered the provision of section 292BB of the Act and held that the said section is not applicable in favour of the assessee as the lack of valid jurisdiction cannot be cured and it is well settled that a jurisdiction can neither be waived nor created even by consent and even by submitting to jurisdiction, an Assessee cannot confer upon any jurisdictional authority, something which he lacked inherently. Therefore the contention of DR regarding applicability of section 292BB also does not hold water in favour of the revenue. Thus impugned reassessment order u/s. 143(3)/147 is not validly sustainable in absence of a valid notice u/s. 148 by the Assessing Officer having jurisdiction over the assessee therefore the same deserves to be quashed being bad in law - Decided in favour of assessee.
Issues Involved:
1. Condonation of delay of 22 days. 2. Validity of notice issued under Section 148 by an officer without jurisdiction. Condonation of Delay of 22 Days: The assessee filed an application seeking condonation of a 22-day delay in filing the appeal. The delay occurred because the director of the assessee company was traveling and could not send the physical set of the appeal on time. The appeal was filed online on 30.07.2022, but the physical copy reached on 25.08.2022. The tribunal found the cause shown by the assessee to be reasonable and beyond their control. Therefore, the delay was condoned, and the appeal was admitted for adjudication. Validity of Notice Issued Under Section 148: The assessee challenged the notice issued under Section 148 by the DCIT, Circle 3(1), Haridwar, arguing it was illegal and without jurisdiction since the jurisdiction lay with ITO, Ward-2(2), Muzaffarnagar. The assessee provided evidence that all previous assessments were completed by officers in Muzaffarnagar and that the PAN migration request was made to DCIT/ACIT, Circle-2, Muzaffarnagar. The DCIT, Circle-3(1), Haridwar, transferred the case to ITO, Ward-2(2), Muzaffarnagar, without an order under Section 127, indicating the lack of jurisdiction. The tribunal noted that the reassessment order was passed by ITO, Ward-2(2), Muzaffarnagar, based on the notice issued by DCIT, Circle-3(1), Haridwar. The tribunal referred to the judgment of the Hon'ble jurisdictional High Court of Allahabad in the case of PCIT vs. Mohd. Rizwan, which held that only the jurisdictional Assessing Officer is entitled to issue a notice under Section 148. Since the notice was issued by an officer without jurisdiction, the reassessment proceedings were void ab initio. The tribunal quashed the reassessment order dated 05.12.2018, holding it invalid due to the lack of a valid notice under Section 148 by the jurisdictional officer. Other Grounds: The representatives of both sides did not place any submissions on the other grounds. Since the reassessment order was quashed, the other grounds were not adjudicated and were left open. Conclusion: The appeal of the assessee was partly allowed. The reassessment order was quashed due to the invalidity of the notice issued under Section 148 by an officer without jurisdiction. The order was pronounced in the open court on 31.05.2023.
|
