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TMI Blog2023 (6) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, 1961 (hereinafter referred to as the "Act"), dated 11.12.2019 for AY 2017-18. 2. Grounds of appeal raised by the assessee are reproduced as under: "1. For that the Ld. CIT(A) erred in passing the order ex-parte without allowing the appellant any proper and reasonable opportunity of being heard since the assessee did not even receive any mail or SMS alert from the department. 2. For that the Ld. C.I.T(A) erred in passing the order when it was incumbent on him to deal with and decide each of the grounds raised in the appeal on its merits. 3. For that on the facts and circumstances of the case the order of the CIT(A) be modified and the assessee be given relief prayed for. 4. For that the Ld. ClT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed under the law and the income even if taxable could be charged u/s. 56 as income from other sources and normal tax was to be calculated under the provisions of law." 3. Brief facts of the case are that assessee filed its return of income on 27.10.2017 reporting total income of Rs.43,53,620/-. Case of the assessee was selected for scrutiny through CASS. In the present appeal, assessee has challenged the issue of notice u/s. 143(2) of the Act vide ground no. 4 by stating that notice issued by Income Tax Officer, Ward-49(1) was without jurisdiction and invalid since the declared income of the assessee for the relevant year is more than Rs. 30 lakhs and only the DCIT/ACIT had the jurisdiction over the case of the assessee who c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Restructuring Departmental Cadre ? ii). Whether on the facts and circumstances of the case the Tribunal was justified in law in not appreciating the fact that the Notice under Section 143(2) of the said Act is issued only once at the time of initiating of the scrutiny assessment, thereafter mere change of jurisdictional Assessing Officer within the same Range and/or Pr.CIT cannot affect the assessment proceedings?" 5. On the above substantial questions of law, the Hon'ble Court held that Tribunal rightly allowed the assessee's appeal and quashed the scrutiny proceedings as effect of non-issuance of notice is incurable since it goes to the root of the matter. The Hon'ble Court noted that "we find no ground to differ with the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Board of Direct Taxes (CBDT vide Instruction No.1 /2011 supra) revised the monetary limit for issuing notice by ITO/DCs/ACs. Through this instruction it stated that in case of metro cities in case of corporate declare income above Rs.30 lakh the jurisdiction of such corporate assessee will lie with the DCs/ACs. It is not in dispute chat as on the date of selecting the case for scrutiny, the very basis for having jurisdiction over the assessee is the returned income which was more than Rs.30 lakhs and the same was lying with the DCs/Acs but the notice u/s. 143(2) of the Act has been issued by ITO, Ward-9(4), Kolkata. It is true that subsequently the assessment has been framed by DCIT, Circle-9(2), Kolkata but the point in dispute is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of selecting the case for scrutiny, the very basis for having jurisdiction over the assessee is the returned income which was more than Rs. 30 lakhs and the same was lying with the DCs/ACs but the notice u/s. 143(2) of the Act has been issued by ITO, Ward 49(1), Kolkata. It is true that subsequently the assessment has been framed by ACIT, Circle-49, Kolkata but the point in dispute is that on the date of issuing a notice u/s. 143(2) of the Act, whether the ITO, Ward-49(1), Kolkata was having a valid jurisdiction to issue such notice u/s. 143(2) of the Act. We find that Hon'ble jurisdictional High Court in the recent judgment in the case of PCIT Vs. Shree Shoppers Ltd. (supra) has decided identical issue in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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