Jurisdictional defect in assessment proceedings where notice and order were issued by an incompetent officer under CBDT Circular No. 1/2011.

Assessment was held invalid for want of jurisdiction where notice under section 143(2) and the assessment order were issued by an officer not competent under CBDT Circular No. 1/2011. The Tribunal found that the assessee's returned income placed the case within the jurisdiction of the ITO, but the ACIT issued the notice and completed the assessment, creating a jurisdictional defect. The High Court agreed that the jurisdictional issue had been correctly decided and found no substantial question of law arose for consideration in the appeal.

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Issues: Whether the assessment was invalid for want of jurisdiction where notice under section 143(2) and the assessment order were issued by an officer not competent under CBDT Circular No. 1/2011, and whether any substantial question of law arose.

Analysis: The Tribunal found that the assessee's returned income placed the case within the jurisdiction of the ITO, while notice under section 143(2) and the assessment order were issued by the ACIT, thereby contravening the jurisdictional allocation under CBDT Circular No. 1/2011. On that basis, it concluded that the assessment proceedings suffered from a jurisdictional defect and were invalid in law. The High Court agreed that the jurisdictional issue had been correctly decided and held that no substantial question of law arose for consideration in the appeal.

Conclusion: The assessment was treated as invalid for want of proper jurisdiction, and the appeal was dismissed.

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