Adhoc 30% disallowance of referral commissions set aside; payments treated as sales promotion, not insurance commissions under s.194D; s.40(a)(ia) rel...
ITAT held that the assessment proceedings were invalid for want of jurisdiction. Jurisdictional notices under s.143(2) were issued by ITO Ward 39(4) and the file was subsequently treated as transferred to ITO Ward 36(4) and finally ITO Ward 36(6) without any valid order under s.127(1); consequently the transferee AO did not acquire jurisdiction to complete assessment. The tribunal concluded that the AO in ITO Ward 36(6) lacked authority to pass the assessment order, quashed the entire proceedings and allowed the grounds raised by the assessee.
ITAT held that the assessment proceedings were invalid for want of jurisdiction. Jurisdictional notices under s.143(2) were issued by ITO Ward 39(4) and the file was subsequently treated as transferred to ITO Ward 36(4) and finally ITO Ward 36(6) without any valid order under s.127(1); consequently the transferee AO did not acquire jurisdiction to complete assessment. The tribunal concluded that the AO in ITO Ward 36(6) lacked authority to pass the assessment order, quashed the entire proceedings and allowed the grounds raised by the assessee.
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