9911796707
TMI Blog2021 (11) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by the Assessing Officer ("AO" in short) dated 28.12.2019 under section 143(3) of the Act concerning Assessment Year ("AY" in short) 2017- 18 was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction. 2. As per its grounds of appeal, the assessee has challenged the revisional action of the PCIT whereby the Assessing Officer was directed to pass the assessment order de novo after making enquiries on the points set out in the notice which has already examined and considered during the original assessment proceedings concerning AY 2017-18. The assessee has challenged the assumption of jurisdiction by the PCIT under Section 263 of the Act on the ground that the Assessment Order under revision is neit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the case and frame fresh assessment order. 5. Aggrieved by the revisional order passed by the PCIT, the assessee preferred an appeal before the Tribunal. 6. When the matter was called out for hearing, the learned Counsel for the assessee made various submissions on lack of jurisdiction and simultaneously action of PCIT also devoid of any merits. The key points of such submissions are broadly noted hereunder:- (i) The assessment order, which is subject matter of revision, in itself, is illegal as the Assessing Officer who passed the assessment order at Raipur did not issue notice under Section 143(2) of the Act prior to assessment; and, therefore, the jurisdiction of the AO at Raipur is ousted from framing assessment order; (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pped by the AO, Kolkata on being apprised of the fact of the transfer of jurisdiction. It is thus manifest that where the AO, Kolkata dropped the proceedings for AY 2014-15 on parallel set of facts, he could not have taken a different stand and issue notice for subsequent AY 2017-18 in question wholly without any command over the assessee. He thus contended that the impugned assessment carried out on the basis of a invalid and infructuous notice under Section 143(2) is in violation of first proviso to Section 143(2) of the Act is wholly unsustainable. It was pointed out that no notice was issued by the AO, Raipur under Section 143(2) of the Act upon the assessee. The AO, Raipur has merely continued to exercise the jurisdiction on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 263 of the Act. For this proposition, a reference was made to the decision of the Co-ordinate Bench rendered in the case of Supersonic Technologies (P) Ltd vs. PCIT in ITA No.2269/DEL/2017, order dated 10.12.2018, wherein it was held that when the assessment order itself is bad in law, the same cannot be revised under Section 263 of the Act. 6.3 The learned Counsel for the assessee thereafter yet again pointed out that Section 292BB is restricted in its scope and applicability; and, it does not apply to cure any and every defect. It was submitted that in the light of long line of judicial precedents, the legislative mandate of Section 292BB is clear. Section 292BB deals with service of notice and not issue of notice. The very issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, since a fundamental question on legality of the assessment order under revision is in question, we do not consider it expedient to record lengthy submission made in this regard at this stage. The arguments of the assessee on merits shall be dealt with appropriately, where the question of adjudicating the issue on merits so arises. 7. The learned CIT-DR for the Revenue, on the other hand, attempted to defend the action of the PCIT and submitted that the notice was issued under Section 143(2) of the Act in the instant case by the Department and does not make any difference whether such notice has been issued by AO stationed at Kolkata or by the AO stationed at Raipur. Once a notice has been issued and served upon the assessee, it cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred from the ITO, Ward (4)(2), Kolkata to ACIT, Central Circle, Raipur. It was further noted at the bottom of the aforesaid transfer order that the order shall take immediate effect. Hence, in view of the aforesaid transfer order, the Assessing Officer at Kolkata was ousted of its jurisdiction and consequently had no locus over the assessee from the date of aforesaid transfer order. The AO at Kolkata was fully aware of this fact, as can be seen from his action, in respect of assessment year 2014-15. As pointed out on behalf of assessee, the proceedings under Section 143(2) were dropped by AO, Kolkata for AY 2014-15 when he was apprised of the fact of transfer of jurisdiction. The facts, in the instant case, are thus speaking for it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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