2010 (10) TMI 770

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.... "On the facts and in the circumstances of the case the learned CIT(A) has erred in- (i) Deleting an addition of Rs. 2,00,000 made under section 68 of the Act unexplained credit by holding that AO cannot establish that the assessee has concealed any income nor could establish what type of accommodation received from M/s MKM Finance (P.) Ltd. when the assessee fails to substantiate any evidence before the AO. (ii) Deleting the addition of Rs. 5,39,568 made on account of disallowances of dividend as exempt from tax as per provision of section 10(23D) of the IT Act by holding that for this fund there was no requirement of registration of the fund with SEBI Act, 1992." 1.3 The assessee has taken up 5 objections which read as under :....

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....reafter, the ITO, Ward-25(2), New Delhi, issued a notice under section 148 dt. 27th March, 2008. In the course of enquiry with the assessee, it was found that the jurisdiction over the case did not lie with that ITO but with ITO, Ward-3, Sriganganagar, which was later on transferred to the ITO, Suratgarh. The ITO at Delhi issued notices under section 143(2) and 142(1) and thereafter the file was transferred to the ITO, Suratgarh. The first objection of the assessee is that the ITO, who recorded the reasons, did not have jurisdiction over his case. He also issued the notice under section 148. Our attention has been drawn towards the provision contained in s. 2(7A) which reads as under : "'AO' means the Asstt. CIT or Dy. CIT or Asstt. Dire....

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....m the CIT and the record was transferred to the ITO, Suratgarh. The jurisdictional ITO considered the case, heard the assessee and passed the assessment order. It was argued that the reasons were validly recorded by the ITO at Delhi who also validly issued notice under section 148. If there is any defect in this action, the same is saved by the provision contained in section 292B. 3. We have considered the facts of the case and submissions made before us. It is an admitted position that the reasons were recorded by non-jurisdictional ITO, who also issued and served a notice under section 148 on the assessee. On the other hand, the assessee informed the particulars of his AO soon after receipt of notice under section 148. Subsequently, th....