Section 147 Reassessment Invalid When Initial Notice Issued by Officer Without Jurisdiction Over NRI Taxpayer

The ITAT ruled in favor of the non-resident Indian taxpayer, invalidating the reopening of assessment under section 147. The notice under section 148 was initially issued by ITO Ward-3(1), Chandigarh, who lacked jurisdiction over NRI assessees. Subsequently, DCIT, International Taxation assumed jurisdiction based on this invalid notice without issuing a fresh notice. The Tribunal noted that the taxpayer had resided in Afghanistan until returning to India under adverse circumstances, and emphasized that the ITO's unilateral transfer of the case to DCIT, International Taxation could not cure the jurisdictional defect. The proceedings were held bad in law due to the initial issuance by a non-jurisdictional authority. .....

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