Monetary jurisdiction defect in reassessment notice renders section 148 proceedings void and the resulting assessment unsustainable.

A reassessment notice issued under section 148 by an officer lacking the prescribed monetary jurisdiction was invalid because the returned and assessed income fell within the limits assigned under CBDT Instruction No. 1/2011 for metro corporate returns. The jurisdictional defect went to the root and was not cured by later assessment proceedings. Consequently, the reassessment notice was quashed and the consequential assessment order also could not survive.

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Issues: Whether the notice issued under section 148 by the Assistant Commissioner of Income-tax was invalid for want of monetary jurisdiction and, if so, whether the reassessment order was liable to be quashed.

Analysis: The returned income and assessed income were both within the monetary limits prescribed by CBDT Instruction No. 1/2011 for corporate returns to be handled by ITOs in metro cities. Since the notice under section 148 was issued by an officer who did not have the prescribed monetary jurisdiction, the notice was held to be invalid. The defect went to the root of jurisdiction and was not cured by the subsequent assessment proceedings. As the notice itself was quashed, the consequential assessment order also could not survive.

Conclusion: The notice under section 148 was held to be jurisdiction and was quashed, and the assessment order was also quashed as a consequence, in favour of the assessee.

Ratio Decidendi: A reassessment notice issued by an officer lacking the prescribed monetary jurisdiction is void and cannot be validated by the resulting assessment.

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