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TMI Blog2025 (2) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... cur with the CIT(Appeals) that he was not vested with any jurisdiction to deal with the specific challenge raised by the assessee as regards the validity of the assessment order that was framed by the A.O de-hors a valid assumption of jurisdiction on his part in absence of an order of transfer u/s. 127 of the Act as required per the mandate of law.
CIT(Appeals) ought to have taken call and adjudicated the aforesaid specific issue, instead of refraining from dealing with the same, which, thus, had resulted to multiplicity of litigation and pushed the assessee into further litigation on the said issue.
Accordingly, not being able to persuade to concur with the view taken by the CIT(Appeals) restore the matter to his file with a direction to adjudicate the challenge thrown by the assessee as regards the validity of the jurisdiction that was assumed by the A.O for framing of the assessment vide his order passed u/s. 144 r.w.s. 147 of the Act dated 16.12.2018 de-hors an order of transfer u/s. 127 of the Act passed by the Pr. CIT, Bilaspur as per the mandate of law. Thus, the Ground of appeal No.2 raised by the assessee is allowed for statistical purposes X X X X Extracts X X X X X X X X Extracts X X X X ..... de order sheet entry dated 13.12.2024. 4. Succinctly stated, the A.O based on information gathered from NMS/ITS module that though the assessee during the subject year had made cash deposits of Rs.17,05,824/- in his bank account but had not filed his return of income, initiated proceedings u/s. 147 of the Act. Notice u/s. 148 of the Act, dated 23.03.2018 was issued by the A.O. 5. As is discernible from the assessment order, it transpires that though the notice u/s. 148 of the Act, dated 23.03.2018 was issued by the ITO-1, Ambikapur, but thereafter, pursuant to the order u/s. 127 of the Act, dated 07.09.2018 passed by the Pr. CIT-1, Bilaspur the case of the assessee was transferred to ITO-3, Korba. 6. As the assessee failed to comply with the notices which were issued by the A.O u/s.142(1) of the Act, dated 29.09.2018 and 12.1.0.2018, therefore, the latter was constrained to proceed with and frame the assessment to the best of his judgment u/s.144 of the Act. The A.O based on information gathered from NMS/ITS module as regards the cash deposits made by the assessee in his bank account issued notice u/s. 133(6) of the Act, dated 12.10.2018 to State Bank of India, Branch: Ramanujga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iction of the Assessing Officer. The appellant claimed that even the order w/s. 127 was passed without giving him opportunity of being heard. 7.2.1. On perusal of assessment order/remand report, it was found that the case was transferred u/s 127 of the Act(order u/s 127 passed by the Hon'ble PCIT, Bilaspur on 07.09.2018) from the O/o ITO-1, Ambikapur to C/o ITO-3, Korba. Accordingly, the Assessing Officer has completed the assessment proceedings following the order of PCIT, Bilaspur, Further, CIT(A) Is-not the appropriate forum to challenge the order u/s. 127 passed by the PCIT, Bilaspur, in view of the above, the appellant's claim is hereby rejected. Hence, this ground of appeal No. 2 is dismissed. 7.3. Ground No. 03 and 05: In these grounds the appellant challenged the Assessment proceedings u/s 144 r.w.s. 147 being ex-parte assessment as no notices were received by the appellant and claimed the assessment order as null and void. 7.3.1 On perusal of assessment order that a notice u/s 148 of the Act was issued on 23.03.2018 on the address available with the department by the AO i.e. the ITO-1, Ambikapur. According to this notice, the ITR was to be filed within 30 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the change of address in the database of PAN is must, in case of change in the name of the company and/or any change in the registered office or the corporate office and the same has to be intimated to the Registrar of Companies in the prescribed format (Form 18) and after completing with the said requirement, the assessee is required to approach the Department with the copy of the said document and the assessee is also required to make an application for change of address in the department at database of PAN." 7.3.3. Therefore, in view of the above discussion, the AO is justified in sending the notices available with the department and fulfilled the statutory requirements. It was failure on part of the appellant to update the correct address in PAN database and communicate to the department. Therefore, the notices issued by the AO to appellant on address available are valid and the appellant failed to respond to the notices issued. In the above condition, the AO had no option but to complete the assessment ex-parte due to time barring of assessment proceedings. Therefore, the assessment completed by the AO u/s. 144 r.w.s. 147 is valid. Accordingly, the Ground No. 3 and 5 are di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, during the appellate proceedings, the appellant failed to file any response and did not provide any supporting documents so that the source of income can be verified. Hence, written submission and supporting documents provided by the appellant during the appellant proceedings was sent to the AO for examining the facts and asked for remand report. 7.4.3. In the remand report the AO stated that the appellant was asked to produce the books of accounts, bank statement for the year under consideration and other supporting documents to verify the genuineness submission made before the Hon'ble CIT(A), but the appellant did not make any compliance to substantiate his claim what he has made before Hon'ble CIT(A). Further he stated that on examination of bank statement, it was found that the debit entries made to Vodafone Essar, but the appellant did not file any compliance to substantiate as to for what purpose the payment made to Vodafone Essar. The onus lies on the appellant to substantiate with evidence to prove that he was authorized by the Vodafone Essar for retail Marketing. retail trading, this fact was also not reflected in Form 26AS. No commission income was found to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant challenged the interest charged and penalty proceedings initiated. These grounds of the appeal are consequential in nature and no adjudication is required. Hence Grounds of appeal No. 7 and 8 are dismissed for statistical purpose. 8. In the result, the appeal of the appellant is dismissed." 8. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal before the Tribunal. 9. I have heard the Ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and the material available on record. 10. Shri G.S. Agrawal, Ld. AR for the assessee, at the threshold, submitted that the A.O had grossly erred in law and facts of the case in assuming jurisdiction de-hors any valid order of transfer u/s. 127 of the Act having been passed by the Pr. CIT-1, Bilaspur. Elaborating on his contention, the Ld. AR submitted that the Pr.CIT-1, Bilaspur vide his order passed u/s. 127 of the Act, dated 07.09.2018 [as could be gathered from the order of the CIT(Appeals)] had though transferred the case of the assessee from ITO-1, Ambikapur to ITO-3, Korba but while doing so had failed to afford an opportunity of being hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have thoughtfully considered the contentions advanced by the Ld. Authorized Representatives of both the parties qua the issue in hand i.e. validity of the jurisdiction assumed by the A.O for framing the assessment vide his order passed u/s. 144 r.w.s. 147 of the Act, dated 16.12.2018 in the backdrop of the order passed by the Pr. CIT, Bilaspur u/s. 127 of the Act, dated 07.09.2018 transferring the case of the assessee from ITO-1, Ambikapur to ITO-3, Korba. 13. Controversy involved in the present appeal lies in a narrow compass, viz. (i) as to whether or not the case of the assessee had been transferred pursuant to the order passed by the Pr. CIT, Bilaspur u/s. 127 of the Act from ITO-1, Ambikapur to ITO-3, Korba as per the mandate of law; and (ii) that as to whether or not, the CIT(Appeals) is right in law and facts of the case in refraining from adjudicating the specific grievance of the assessee that as the Pr. CIT, Bilaspur without affording an opportunity to the assessee had transferred his case pursuant to the order passed u/s. 127 of the Act, dated 07.09.2018 from ITO-1, Ambikapur to ITO-3, Korba, therefore, the latter had wrongly assumed jurisdiction and framed the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, pass the order; (b) where the Principal Directors General or Directors General or Principal Chief Commissioners or Chief Commissioners or Principal Commissioners or Commissioners aforesaid are not in agreement, the order transferring the case may, similarly, be passed by the Board or any such Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner as the Board may, by notification in the Official Gazette, authorise in this behalf. (3) Nothing in sub-section (1) or sub-section (2) shall be deemed to require any such opportunity to be given where the transfer is from any Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place. (4) The transfer of a case under sub-section (1) or sub-section (2) may be made at any stage of the proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served by me hereinabove, the CIT(Appeals) had refrained from adjudicating the aforesaid specific challenge to the validity of the jurisdiction that was assumed by the A.O for framing the assessment by holding a conviction that he was not a proper forum to challenge the order passed by the Pr. CIT, Bilaspur u/s. 127 of the Act. I am unable to persuade myself to concur with the aforesaid observation of the CIT(Appeals). I am of the view that the assessee had assailed the validity of the jurisdiction that was assumed by the A.O for framing the impugned assessment u/s. 144 r.w.s. 147 of the Act, dated 16.12.2018 on the ground that the order of transfer passed by the Pr. CIT, Bilaspur u/s. 127 of the Act was not as per the mandate of law. I am unable to concur with the CIT(Appeals) that he was not vested with any jurisdiction to deal with the specific challenge raised by the assessee as regards the validity of the assessment order that was framed by the A.O de-hors a valid assumption of jurisdiction on his part in absence of an order of transfer u/s. 127 of the Act as required per the mandate of law. I am of the view that the CIT(Appeals) ought to have taken call and adjudicated the af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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