https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=754671 https://www.taxtmi.com/caselaws?id=754671 Issuance of notice u/s 143(2) by non jurisdictional AO/ITO - As argued no notice u/s 143(2) was issued by the jurisdictional AO i.e., DCIT-2(1), Bilaspur who had framed and passed the assessment order - contention of Ld. Sr. DR that the notice u/s 143(2) of the Act was issued by the ITO Ward 1(1), Bilaspur, since the PAN of the assessee was lying with him at the time of issuance of notice - As soon as ITO 1(1) has realized that the amount of returned income filed by the assessee exceeds Rs. 15 Lacs, he transferred the said case to DCIT-1(1) Bilaspur HELD THAT:- Admittedly, in the present case the mandatory notice u/s 143(2) for initiating the assessment proceedings was issue by ITO Ward 1(1), Bilaspur vide notice dated 17.03.2016, who at relevant point of time was not vested with valid jurisdiction over the case of the assessee, since the cases having returned income above Rs. 15,00,000/- in the case of corporate assessee s are under the jurisdiction of ACIT/DCIT. The assessee s returned income was Rs. 21,44,050/-, which as discussed hereinabove is more than Rs. 15 Lac, therefore the valid jurisdiction was with ACIT/DCIT. In view of aforesaid CBDT s instructions referred to supra, followed by communication by the Ld. CCIT, Raipur, we hold that the first notice u/s 143(2) issued by the ITO Ward-1(1), Raipur, was clearly against the mandate of instructions issued and thereafter subsequently no notice u/s 143(2) was issued by the jurisdictional AO i.e., DCIT-2(1), Bilaspur who had framed and passed the assessment order. Objection raised by DR that the assessee has not objected to the jurisdiction of the ITO-1(1) within the stipulated time period as per provisions of section 124(3) of one month from the date on which the notice was served on the assessee - The issue has been duly considered in the case of Durga Manikanta [ 2023 (1) TMI 1099 - ITAT RAIPUR] held as the assessee s objection to the validity of the jurisdiction assumed by the Income- Tax Officer, Ward-2(2), Bhilai is by no means an objection to his territorial jurisdiction, but in fact an objection to the assumption of jurisdiction by him in contravention of the CBDT Instruction No.1/2011, dated 31.01.2011, therefore, the provisions of sub- section (3) of Section 124 would not assist the case of the revenue. Thus admittedly, the first notice u/s 143(2) was issued by ITO Ward- 1(1), Bilaspur, on 17.03.2016, who was not vested with valid jurisdiction over the case of the assessee, therefore, the assessment framed on the foundation of such invalid notice is liable to be struck down. It is pertinent to mention that the DCIT, Circle-2(1), Bilaspur, who had framed the assessment have never issued any notice u/s 143(2) of the Act, therefore, the assessment order framed u/s 143(3) cannot survive on the basis of the first notice u/s 143(2). Thus assessment order passed u/s 143(3) by DCIT, Circile-2(1), Bilaspur, on the basis of proceedings initiated vide notice u/s 143(2) dated 17.03.2016 by ITO, W-1(1), Bilaspur, who at the relevant point of time was not vested with valid jurisdiction over the case of the assessee, cannot be sustained, thus, the same is liable to be quashed, and we do so. Appeal of assessee allowed. Case-Laws Income Tax Thu, 22 Feb 2024 00:00:00 +0530