Appeal partly allowed: Reassessment order quashed due to invalid notice. Void ab initio.

The tribunal partly allowed the appeal of the assessee by quashing the reassessment order due to the invalidity of the notice issued under Section 148 by an officer without jurisdiction. The reassessment proceedings were deemed void ab initio, following the precedent set by the Hon'ble jurisdictional High Court. As a result, the reassessment order dated 05.12.2018 was invalidated, and the other grounds were left unadjudicated. The decision was rendered on 31.05.2023.

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Issues Involved:
1. Condonation of delay of 22 days.
2. Validity of notice issued under Section 148 by an officer without jurisdiction.

Condonation of Delay of 22 Days:
The assessee filed an application seeking condonation of a 22-day delay in filing the appeal. The delay occurred because the director of the assessee company was traveling and could not send the physical set of the appeal on time. The appeal was filed online on 30.07.2022, but the physical copy reached on 25.08.2022. The tribunal found the cause shown by the assessee to be reasonable and beyond their control. Therefore, the delay was condoned, and the appeal was admitted for adjudication.

Validity of Notice Issued Under Section 148:
The assessee challenged the notice issued under Section 148 by the DCIT, Circle 3(1), Haridwar, arguing it was illegal and without jurisdiction since the jurisdiction lay with ITO, Ward-2(2), Muzaffarnagar. The assessee provided evidence that all previous assessments were completed by officers in Muzaffarnagar and that the PAN migration request was made to DCIT/ACIT, Circle-2, Muzaffarnagar. The DCIT, Circle-3(1), Haridwar, transferred the case to ITO, Ward-2(2), Muzaffarnagar, without an order under Section 127, indicating the lack of jurisdiction.

The tribunal noted that the reassessment order was passed by ITO, Ward-2(2), Muzaffarnagar, based on the notice issued by DCIT, Circle-3(1), Haridwar. The tribunal referred to the judgment of the Hon'ble jurisdictional High Court of Allahabad in the case of PCIT vs. Mohd. Rizwan, which held that only the jurisdictional Assessing Officer is entitled to issue a notice under Section 148. Since the notice was issued by an officer without jurisdiction, the reassessment proceedings were void ab initio. The tribunal quashed the reassessment order dated 05.12.2018, holding it invalid due to the lack of a valid notice under Section 148 by the jurisdictional officer.

Other Grounds:
The representatives of both sides did not place any submissions on the other grounds. Since the reassessment order was quashed, the other grounds were not adjudicated and were left open.

Conclusion:
The appeal of the assessee was partly allowed. The reassessment order was quashed due to the invalidity of the notice issued under Section 148 by an officer without jurisdiction. The order was pronounced in the open court on 31.05.2023.

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