Section 148 Notices Issued by Non-Jurisdictional Officer (and Transferred under Section 129) Invalid; Reassessment Quashed

HC held the reopening notices under section 148 issued by the non-jurisdictional officer were invalid for lack of jurisdiction, and the subsequent notice by the officer who received transferred files under section 129 was also invalid. The invalid notices vitiated the entire reassessment proceedings. As no valid notice under section 148 was issued by the jurisdictional assessing officer within the statutory period and the six-year limitation for reopening the relevant year expired on 31.03.2018, the assessee's appeal was allowed and reassessment set aside.

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Issues Involved:
1. Jurisdiction of the first respondent to issue notice under Section 148 of the Income Tax Act, 1961.
2. Validity of reassessment proceedings initiated after the statutory period.
3. Continuation of reassessment proceedings by the second respondent without issuing a fresh notice under Section 148.

Detailed Analysis:

1. Jurisdiction of the First Respondent to Issue Notice under Section 148 of the Income Tax Act, 1961:

The appellant contended that the first respondent lacked jurisdiction to issue the notice dated 28.03.2018 under Section 148 of the Act, as she was not residing within the jurisdiction of the first respondent. The court emphasized that "a jurisdiction can neither be waived nor created even by consent and even by submitting to jurisdiction, an Assessee cannot confer upon any jurisdictional authority, something which he lacked inherently". The court found that the first respondent, who recorded the reasons for reopening the assessment under Section 148(2), had no jurisdiction over the appellant to issue the notice under Section 148(1). Consequently, the notice issued by the first respondent was held to be invalid.

2. Validity of Reassessment Proceedings Initiated After the Statutory Period:

The appellant argued that the reassessment proceedings were initiated after a period of five years from the completion of the original assessment for the assessment year 2011-2012, which was beyond the statutory period. The court noted that the limitation period for initiating reassessment proceedings for the assessment year 2011-12 ended on 31.03.2018. Since the second respondent, who is the jurisdictional assessing officer, did not issue any notice under Section 148 before this date, the reassessment proceedings were invalid. The court held that the continuation of reassessment proceedings by the second respondent, without issuing a fresh notice under Section 148, was invalid.

3. Continuation of Reassessment Proceedings by the Second Respondent Without Issuing a Fresh Notice under Section 148:

The appellant contended that the second respondent could not continue the reassessment proceedings initiated by the first respondent without issuing a fresh notice under Section 148. The court referred to Section 129 of the Act, which applies when there is a change of incumbent within the same jurisdiction. The court found that the second respondent, without issuing any fresh notice under Section 148, continued the reassessment proceedings initiated by the first respondent, who lacked jurisdiction. The court held that the continuation of reassessment proceedings by the second respondent under Section 143(2) r/w 129 of the Act, without issuing a fresh notice under Section 148, was invalid.

Conclusion:

The court concluded that the notice dated 28.03.2018 issued by the first respondent under Section 148, without jurisdiction, lacked legal sanctity and was invalid. Consequently, the continuation of the reassessment proceedings by the second respondent, without issuing a fresh notice under Section 148, was also held to be invalid. The court set aside the notices impugned in the writ petition and the order of the learned Judge, thereby allowing the writ appeal. The court emphasized that if an order is passed by a judicial or quasi-judicial authority having no jurisdiction, it is an obligation of the appellate court to rectify the error and set aside the order passed by the authority or forum having no jurisdiction.

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