2019 (3) TMI 1968 - AT - Income Tax

Invalid assessment quashed due to territorial jurisdiction issue under Income Tax Act.

The judgment pertains to an appeal against the CIT(A)-13, Kolkata's order for the assessment year 2015-16. It addresses the issue of territorial ... Non-issuance of section 143(2) by the AO having territorial jurisdiction - Transfer of assessee jurisdiction - HELD THAT:- CIT(A) hold that the Assessing Officer has assumed jurisdiction based on PAN basis. He is fair enough in not disputing the clinching fact that the assessee’s jurisdiction already stood transferred to latter AO who has framed assessment for preceding assessment year 2014-15 in its case on 30.09.2016. Hon’ble jurisdictional high court decision in Smt. Smriti Media [2011 (4) TMI 1158 - CALCUTTA HIGH COURT] holds that such an assessment without having territorial jurisdiction is not sustainable in the eyes of law. We draw support therefrom to hold that the impugned assessment framed is not valid. The same is accordingly quashed. Appeal of assessee allowed. Issues involved:1. Territorial jurisdiction of the Assessing Officer regarding the validity of the assessment.Analysis:1. The judgment pertains to an appeal for the assessment year 2015-16 against the CIT(A)-13, Kolkata's order. The primary issue addressed is whether the impugned assessment is valid concerning the territorial jurisdiction of the Assessing Officer. The Assessing Officer issued a section 143(2) notice dated 28.07.2016, but it was noted that the jurisdiction had been transferred to another Assessing Officer. The final assessment was conducted by a different Assessing Officer. The CIT(A) acknowledged that the jurisdiction had been transferred and based the assessment on PAN basis. Citing the decision in Smt. Smriti Media Vs UOI, it was concluded that an assessment without proper territorial jurisdiction is not sustainable in law, leading to the quashing of the assessment.2. The judgment highlights the importance of territorial jurisdiction in conducting assessments under the Income Tax Act, 1961. It emphasizes that assessments must be carried out by the Assessing Officer with the appropriate territorial jurisdiction to ensure the validity of the assessment process. The decision in Smt. Smriti Media Vs UOI serves as a precedent to establish that assessments conducted without the requisite territorial jurisdiction are not legally valid. The judgment underscores the significance of adhering to jurisdictional requirements to maintain the integrity and legality of assessment procedures under the Act.3. The judgment provides a clear illustration of the consequences of conducting assessments without proper territorial jurisdiction. It elucidates that assessments carried out by Assessing Officers lacking the required jurisdiction are deemed invalid under the law. By referencing the decision in Smt. Smriti Media Vs UOI, the judgment reinforces the principle that territorial jurisdiction plays a crucial role in ensuring the legality and validity of assessments. The ruling serves as a reminder of the legal obligations imposed on Assessing Officers to adhere to jurisdictional boundaries when conducting assessments to uphold the rule of law and procedural fairness in tax matters.4. In conclusion, the judgment allows the appellant's appeal, emphasizing the significance of territorial jurisdiction in assessment proceedings. By quashing the impugned assessment conducted without proper jurisdiction, the judgment upholds the legal principle that assessments must be carried out within the prescribed territorial limits by the designated Assessing Officer. The decision serves as a legal precedent underscoring the importance of jurisdictional compliance in maintaining the integrity and legality of assessment processes under the Income Tax Act, 1961.