Tribunal nullifies assessment order for lack of jurisdiction compliance

The Tribunal ruled in favor of the assessee, declaring the assessment order null and void-ab-initio due to the lack of compliance with jurisdictional provisions regarding the transfer of the case between Assessing Officers and issuance of notice u/s.143(2) of the Income Tax Act. The Tribunal emphasized the importance of providing a reasonable opportunity of hearing during such transfers. As a result, the lower authorities' orders were set aside, and the appeal was allowed solely on the jurisdictional issue, with other grounds on merits being dismissed as academic.

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Issues: Jurisdictional issue regarding notice u/s.143(2) of the Income Tax Act and transfer of case between Assessing Officers.

Analysis:
1. The appeal challenged the assessment order as void-ab-initio due to a jurisdictional issue. The notice u/s.143(2) was served by a different Assessing Officer than the one who completed the assessment u/s.143(3), leading the assessee to claim lack of jurisdiction.

2. The Revenue argued that a change in the incumbent of the office was duly notified to the assessee, and the assessment order was in compliance with the law, even without granting a hearing upon internal transfer of the case between Assessing Officers with concurrent jurisdiction.

3. The assessee contended that the transfer of jurisdiction from one Assessing Officer to another should involve informing the assessee and recording their submissions, as per Section 127 of the Act. The absence of notice u/s.143(2) by the Assessing Officer who completed the assessment rendered the order void-ab-initio.

4. The assessee relied on the Supreme Court's ruling in ACIT & Anr. Vs. Hotel Blue Moon, emphasizing the mandatory requirement of notice u/s.143(2) for the Assessing Officer's jurisdiction.

5. The Tribunal analyzed the case records and arguments, highlighting the discrepancy between the officer issuing the notice u/s.143(2) and the one framing the assessment. It emphasized the necessity of providing a reasonable opportunity of hearing during the transfer of cases, as per Section 127 of the Act.

6. Upholding the importance of notice, service, and hearing in tax jurisprudence, the Tribunal deemed the assessment order null and void-ab-initio due to the lack of compliance with the provisions regarding transfer of jurisdiction and notice issuance.

7. Consequently, the Tribunal set aside the lower authorities' orders and ruled in favor of the assessee, allowing the appeal based on the jurisdictional issue. Other grounds on merits were deemed academic and dismissed.

8. The decision was pronounced on August 6, 2019, in favor of the assessee, declaring the assessment order null and void-ab-initio.

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