TaxTMI 
TaxTMI 
2013 (8) TMI 694
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....92BB of the I. T. Act 1961. The CIT(A) failed to appreciate that the Section 292BB of the I. T. Act, 1961 do not apply to the assessment year under consideration. 3. For that in the facts and circumstances of the case the CIT(A) erred in holding that the reopening u/s. 148 of the I. T. Act 1961 was valid in terms of section 124 of the I. T. Act 1961. The CIT(A) failed to appreciate that in view of order u/s. 127 of the I. T. Act, 1961 the Assessing Officer ceased to have jurisdiction over the case and hence the reopening was invalid. 4. For that in the facts and circumstances of the case the CIT(A) erred in holding that the section 124 of the I. T. Act 1961 applied to the case of the appellant." 3. Briefly stated facts are that the assessee filed its return of income at Delhi in the office of ITO, Ward-3(3) Delhi on 02-12-2003. Subsequently, notice u/s. 148 of the Act was issued on 25-03-2010 with the permission of Addl. CIT, Range-3, New Delhi. But, in the meantime, CIT-1, Delhi passed an order u/s. 127(2) transferring the jurisdiction of this case vide its order No.CIT-1/Cent/09-10/1874 dated 04-01-2010 from ITO, Ward-3(3), New....
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....48 vide petition dated 03.12.10. 7. 03-12-10 Notice u/s 143(2) and 142(1) both were issued and served. 8. 29-12-10 Assessment completed u/s 147/144 as there were non-compliance Though the order u/s 127 was passed by Ld. CIT, Delhi-I, on 04-01-10, but till the time the records are not transferred to the transferee AO, the jurisdiction lies with the Assessing Officer holding the charge over the case and all action as per the law is required to be initiated or taken by that jurisdictional AO only. Hence the jurisdictional AO at Delhi has rightly re-opened the case on approval from higher authority and issued notice u/s 148. On receiving the records on 30-11-10 the undersigned disposed off the case u/s. 147/144 as per the law after offering reasonable opportunities of being heard to the assessee." During the appellate proceedings on 16-02-2010, CIT(A) recorded following order sheet entry: "Mr. Miraj D. Shah, Advocate attended the proceedings & filed written submission of one paper along with the copy of reasons recorded, order sheet of 147 proceedings given. The appellant has submitted that fil....
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....n the Act to which the plea of the jurisdiction may be raised, it cannot be challenged before the appellate authorities. This judgment of the Hon'ble Allahabad High Court has been upheld by the Hon'ble Supreme Court reported at [1991] 188 ITR (St.) 84. The Hon'ble Calcutta High Court in the case of Grindlays Bank Ltd. v. CIT [1992] 193 ITR 457 (Cal.) has held that the assessee who had not raised the objection at the time of hearing of the case by the Assessing Officer or within the period of one month as is prescribed under section 124, the same could not be challenged subsequently. 18. The order u/s 127 was passed by Ld. CIT, Delhi-l, on 04-01-10, but before the time the records were not transferred to the transferee Assessing Officer, the jurisdiction lies with the Assessing Officer holding the charge over the case and all action as per the law is required to be initiated or taken by that jurisdictional Assessing Officer only as per the submissions of current Assessing Officer i.e. Income-tax Officer, Ward 6(1), Kolkata and he further submitted that the jurisdictional Assessing Officer at Delhi has rightly re-opened the case after due approval from his j....
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....re issued and served. 8. 29-12-10 Assessment completed u/s 147/144 as there were non-compliance 6. We find that the AO in his remand proceedings noted that although the order u/s. 127 of the Act was passed by CIT, Del-1 on 04-01-2010, reasons were recorded for reopening on 23-03-2010 for issuance of notice u/s. 148 of the Act on 25-03-2010 because till the time the records are not transferred to the transferee AO, according to him, the jurisdiction lies with the AO holding the charge over the case and all action as per law are required to be initiated or taken by that jurisdiction AO only. Even the CIT(A) noted that the assessee has never objected regarding the jurisdiction of issuance of notice u/s. 148 of the Act by the AO of New Delhi or initiation/continuation of assessment proceedings by the ITO, Ward-6(1), Kolkata before the AO during the assessment proceedings. Whether such a plea can be accepted or not? Before us, Ld. Sr. DR heavily relied on the decision of Hon'ble Punjab & Haryana High Co....
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....ssessment of the case. This power, in the absence of any prohibition or restriction, empowers the Commissioner of Income-tax to effect realignment of jurisdiction. The Commissioner of Income-tax by order or direction, while divesting these authorities of the power in respect of performance of their duties under the Act conferred earlier, may confer such jurisdiction to other authorities under the Act, as he may direct. As soon as such order or direction is made completely divesting the jurisdiction of the authorities so long so empowered, all proceedings including those which might arise thereafter, before them as also proceedings pending before them, come within the jurisdiction of the newly conferred authorities unless any specific provision is made in respect of any pending proceedings. Such consequence is inevitable when there is withdrawal of jurisdiction, which means automatic extinction of jurisdiction of one authority with simultaneous conferment of jurisdiction on another authority under the Act in respect of all pending and future proceedings. Explanation to section 127 of the Act makes it clear that the word "case" in relation to any person whose name is specified in the....