9911796707
TMI Blog2018 (8) TMI 1793X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble jurisdictional High Court. Admittedly, no evidence of filing of writ appeal or pendency of the Writ Appeal or any orders passed by the Hon'ble jurisdictional High Court in respect of the Writ Appeal has been produced before us. The challenge to the jurisdiction u/s.120(4)(b) has not been made within the prescribed time u/s.124(3) of the Act to the authority, whose jurisdiction is being challenged. Consequently, the issue of the challenge of the jurisdiction no more survives. Penalties levied u/s.272(A)(2)(e) - assessee has never filed its returns earlier Registration u/s.12AA - HELD THAT:- Admittedly the assessee has submitted that the assessee was under the bona fide belief that the JCIT, Thanjavur Range, Thanjavur did not have jurisdiction. Admittedly, the assessee has never filed its returns hitherto earlier. This being so, the bona fide belief of the assessee cannot be disregarded. Further, perusal of the assessment order also shows that the AO has completed the assessment with the presumption that the assessee does not have registration u/s.12AA. The assessee has been granted registration u/s.12AA of the Act by an Order of the Tribunal, which has been given effect by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kshisundaram represented on behalf of the Assessee, and Mr.AR.V.Sreenivasan represented on behalf of the Revenue. 3. It was submitted by the ld.A.R that the assessee is a Trust, formed during the year 1911 and carried out activities in propagating the proficiency of Tamil language and culture. It was a submission that assessee-trust had originally been denied registration u/s.12A of the Act and subsequently on account of the Order of the Tribunal, Registration had been granted u/s.12AA of the Act by the Commissioner of Income Tax-II, Trichy vide order dated 17.11.2011 with effect from 01.07.1973. One of the primary grounds raised by the assessee was that there was a survey on the premises of the assessee-trust on 04.08.2010 by the Income Tax officer, Ward-1(1), Thanjavur and subsequently notices under sections 142(1) 148 of the Act came to be issued by the Joint Commissioner of Income Tax (JCIT), Thanjavur Range, Thanjavur. It was a submission that the JCIT, Thanjavur range did not have the jurisdiction to issue the notices u/s.148 or u/s.142(1) of the Act insofar as the jurisdiction has not been vested with JCIT, Thanjavur Range. Consequently, the assessments made u/s.144 r.w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in WP No.8062 of 2011. It was a submission that the assessee's main thrust of the argument was that there is violation of provisions of the section 120(4)(b) of the Act insofar as there is no notification directing the assessee is to be assessed by the JCIT, Thanjavur Range, Thanjavur. On merits, It was a submission that the issues in the appeals may be restored to the file of ld. Assessing Officer for re-adjudication and that the assessee would co-operate in the set aside proceedings. The ld.A.R has specifically given a noting in the appeal folder file as follows:- I am undertaking to co-operate with the Department, by rendering all co-operation in case the matter is restored to the Assessing Officer. K.Meenakshi Sundaram The photocopy of above noting in appeal folder file is attached with this order as Annexure-I. When the ld.A.R was asked as to whether he has any evidence to show the challenge to the jurisdiction has been made within the time provided u/s.124(3)(b) of the Act. The ld.A.R submitted that when the Writ Appeal filed by the assessee is pending before the jurisdictional High Court, the Tribunal should await the decision of the Hon'ble jurisdictiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanjavur Range, Thanjavur on 12.08.2010 was served on the assessee on 12.08.2010. This is evident from page-13 of the assessment order. Notice u/s.142(1) was served on the assessee on 08.03.2011. Admittedly, assessee has not challenged the jurisdiction by intimating the ld. Assessing Officer as required u/s.124(3)(b) of the Act within the time provided therein. It must be mentioned herein that the challenge to the jurisdiction has been provided in Section 124(3) of the Act wherein the time for challenging has also specified, so that the Revenue would also have an opportunity to rectify any defects, if found validly raised. This has not been done. Once the time limit for challenging jurisdiction has expired, the same cannot be challenged. Admittedly, the provisions of the section 292BB introduced by the Finance Act, 2008 would not apply insofar as the assessee is not challenging the notices or the service of the notices, but the assessee has challenged the very jurisdiction and the challenge to the jurisdiction has to be within the time provided u/s.124(3) of the Act. Further, as has been pointed out by the ld.D.R, though the assessee has filed Writ Petition before the Jurisdictiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, the issues in these appeals in respect of the merits are restored to the file of ld. Assessing Officer for re-adjudication after considering the registration u/s.12AA of the Act granted to the assessee by Commissioner of Income Tax vide order dated 17.11.2011 and after affording an opportunity to the assessee in view of the undertaking given by the Authorised Representative of assessee-trust that the assessee would co-operate in the set-aside proceedings. 6. In the result, the quantum of appeals, filed by the assessee in ITA Nos. 3013 to 3018/Chny./2017 are partly allowed for statistical purposes. ITA Nos. 3019 to 3024/Chny./2017 (penalty u/s.272(A)(2)(e) of the Act) 7. It was submitted by the ld.A.R that the assessee was under the bona fide belief that the JCIT, Thanjavur Range, Thanjavur did not have the jurisdiction over the assessee. In consequent, the assessee had not filed returns. It is also submitted by the ld.A.R that the assessee was under bona fide belief that no returns need to be filed as the assessee was having an exempt income. It was the prayer that the penalty levied u/s.272(A)(2)(e) of the Act may be cancelled. 8. In reply, the ld.D.R vehementl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
