TaxTMI 
TaxTMI 
2007 (8) TMI 24
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....er section 127 of the Act has been passed by the income-tax authorities at Calcutta transferring the case to Guwahati it is held that neither the Assessing Officer nor the Commissioner of Income-tax (Appeals-2), Guwahati would have jurisdiction in respect of the assessee. Accordingly, it is held that the notice under section 158BD of the Act issued by the Assessing Officer at Guwahati completely lacks jurisdiction. 4 On the basis of such finding regarding the lack of jurisdiction, the Appellate Tribunal by the impugned order has quashed the assessment order passed as void ab initio for want of jurisdiction and on the same reasoning, the first appellate order of the Commissioner of Income-tax (Appeals-2) was also set aside. The Appellate Tribunal did not go into the other issues raised, as the issue on the jurisdiction, was answered in favour of the assessee. 5 Before examining the legality of the impugned decision of the Appellate Tribunal, the salient facts may be noticed. There was a search in the Gogoi group of companies on November 20, 1997, under section 132 of the Income-tax Act, 1961, resulting in seizure of substantial number of "pass books cheque books and other document....
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.... 8-6-2000 "To The Additional Commissioner of Income-tax, Assessment, Special Range-1, Guwahati. Sub : Explanation regarding Sources of Funds. Ref: (i) Your Notice G-9/JCIT(A)/SR-I/GHY/360 & 361 dated May 30, 2000. (ii) GIR No.G-9/JCIT/SR-II. Sir, With reference to above it is respectfully submitted 1. That sir, in response to your notice under section 158BD, we had submitted return in Form No. 2B under protest on December 6, 1999. The notice and proceedings under section 158BD is invalid and with out jurisdiction on the facts of the case. 2....
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....iction. It was further submitted that there is no dispute so far as jurisdiction of the Assessing Officer is concerned and accordingly, there is no question for referring the issue to the higher authorities under section 124(2) of the Act. 9 The Commissioner of Income-tax Appeals-2) found that the protest made by the assessee through their communication dated June 8, 2000, (extracted as above) was a general one and no specific reason was cited, indicating why the Assessing Officer at Guwahati lacked jurisdiction. The appellate authority also found that the said objection was vague and not specific. The comments of the Assessing Officer were also noted and the appellate authority found that the entire business operation of the asses see-company is conducted within Guwahati jurisdiction and the heads, brains and the management of the company are entirely within Assam. It was further found that the assessee, although had their registered office at Calcutta, had never filed any return nor was ever assessed by the income-tax authorities at Calcutta. 10 Accordingly, it was held that the Assessing Officer at Guwahati had exercised his jurisdiction correctly under section 158BD of the Ac....
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....thout jurisdiction on the facts of the case". 16 The objection as to the jurisdiction of the Assessing Officer was obviously general in nature as is evident from the letter dated June 8, 2000. But it would appear that the representative of the assessee argued the question of jurisdiction before the Assessing Officer and the Assessing Officer deliberated upon the question and eventually, proceeded to assess the tax liability of the assessee rejecting the plea of lack of jurisdiction. Therefore, the question of lack of jurisdiction was very much an issue before the Assessing Officer. 17 Section 124 of the Act provides for jurisdiction of the Assessing Officer. Under clause (a) of section 124(1), it is provided that jurisdiction would be determined by looking at the "principal place" of business or profession. An Assessing Officer will assume jurisdiction over any person if the place where he carries on his business or profession is situate within the area. If the business or profession of a person is carried on in more places than one, the Assessing Officer having jurisdiction over the principal place of business or profession will have jurisdiction to assess the tax liability of s....