Tribunal quashes assessment order for lack of jurisdiction in Kolkata AO appeal

The Tribunal allowed the appeal, quashing the assessment order by the Kolkata AO for the Assessment Year 2008-09 due to lack of jurisdiction following the transfer to Chennai. The Tribunal emphasized that any decision by an officer without jurisdiction is non-existent in the eye of the law and hence a nullity, relying on the judgment in Ramshila Enterprises Private Ltd.

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Issues Involved:
1. Jurisdiction of the Assessing Officer to complete the assessment.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Assessing Officer to complete the assessment:

The primary issue raised by the assessee was the jurisdiction of the Assessing Officer (AO) in Kolkata to complete the assessment for the Assessment Year 2008-09. The assessee contended that the jurisdiction over their case had been transferred to the ACIT, Central Circle 2(3), Chennai, as per an order under section 127 of the Income Tax Act, 1961, issued on 15.03.2013. Consequently, the assessment order dated 24.03.2014, passed by the AO in Kolkata, was argued to be without jurisdiction and thus invalid.

The assessee's counsel argued that the assessment framed by the AO in Kolkata under sections 143(3)/147/263/144 of the Act was without jurisdiction due to the transfer order. The counsel cited the case of Ramshila Enterprises (P) Ltd, where the Calcutta High Court held that any order passed by an officer who no longer had jurisdiction was a nullity.

On the other hand, the Department's representative argued that the assessment by the Kolkata AO was for administrative convenience and did not affect the jurisdiction. The representative referenced the case of Ojasvi Motor Finance Pvt. Ltd, where the jurisdiction transfer occurred after the issuance of notices under section 263, thus not affecting the validity of the assessment.

Upon reviewing the submissions, documents, and case laws, the Tribunal noted that the order under section 127 transferring jurisdiction from ITO, Wd-1(4), Kolkata to ACIT Central Circle-II(3), Chennai was issued on 15.03.2013. The assessment order by the Kolkata AO on 24.03.2014 was therefore without jurisdiction. The Tribunal relied on the judgment of the Calcutta High Court in Ramshila Enterprises Private Ltd, which emphasized that any decision by an officer without jurisdiction is non-existent in the eye of law and hence a nullity.

The Tribunal concluded that the assessment order passed by the AO in Kolkata was invalid due to lack of jurisdiction following the transfer order under section 127. Consequently, the assessment order was quashed.

Conclusion:

The Tribunal allowed the appeal of the assessee, quashing the assessment order passed by the AO in Kolkata due to lack of jurisdiction following the transfer of jurisdiction to Chennai. The Tribunal reiterated that even a correct decision by an officer without jurisdiction is a nullity in the eyes of the law.

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