TaxTMI 
TaxTMI 
2019 (12) TMI 136
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....eassessment order passed by the latter was without jurisdiction and consequently the re-assessment order deserved to be held as illegal. 3. BECAUSE even if it is held that the "Dy. CIT" was vested with the jurisdiction of Assessing Officer in the case of the "appellant", then also the re-assessment order passed by him is illegal, because he did not issue the mandatory notices under section 148 and section 143(2) of the "Act" within the statutory time limit. 4. BECAUSE the "CIT(A)" has failed to appreciate that the jurisdiction of the Assessing Officer cannot be conferred merely by the consent of the assessee and consequently, transfer of case from ITO-1(3), Lucknow to "Dy. CIT" on the request made by the assessee cannot validly vest the jurisdiction with the "Dy. CIT" and on a due consideration of such legal & factual matrix, the re-assessment order passed by "Dy. CIT" cannot be held to be valid in the eyes of law. 5. BECAUSE the "reasons recorded" for escapement of income were deficient in meeting the requirement of law and consequently "CIT(A)" ought to have held the reassessment order as null and void. 6. BECAUSE there was no live link or nexu....
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....bsp; DCIT-6, Lucknow-NEW (i) All company cases starting with ?S? to ?Z? letter of English Alphabet, having return income/loss, exceeding Rs. 15 lakhs & above and their Directors & Managing Directors in the Revenue District of Lucknow. ii) All non-company cases where return income/loss is more than Rs. 10 lakhs falling under Areas falling under the following Postal Index Number (PIN) Codes of Lucknow District:-226003-Lucknow Chowk, 226005 -Alambagh, 226008-Industrial Area Sarojni Nagar, 226009-Amausi, 226011- Manak Nagar, 226012- LDA Colony, 227101- Banthara iii) All persons having principal source of income as "Salary"/ "Pension" exceeding Rs. Ten Lakhs, from Autonomous Bodies (Sanjay Gandhi Post Graduate Institute of Medical Science (SGPGI), Lucknow University, Chhatrapati Sahuji Maharaj Medical University, Schools, Colleges and Universities. LKN C 53 1" 3. As per the ld. counsel for the assessee, since the DCIT, Range-6, Lucknow did not issue any mandatory statutory notice, either under section 148 of the Act, or under section 143(2) of the Act, the reassessment order passed by him is bad in law. For the proposition that the reassessment order is invalid for ....
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....e Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed ; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139." So, section 148(1) talks of the statutory mandate on the Assessing Officer to serve notice on the assessee to furnish the return of income, before making, inter alia, the reassessment under section 147 of the Act. Now, "Assessing Officer" is defined in section 2(7A), as follows: '2(7A) "Assessing Officer" means the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provi....
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...., it is his satisfaction which is to be recorded for justifying reopening of assessment/reassessment proceedings as contemplated under Section 147 and recording of reasons for the same purpose is mandatory. The satisfaction of Assessing Officer could not have been hired or be delegated to any other authority. 35. In Commissioner of Income Tax, Kerala v. Thayaballi Mulla Jeevaji Kapasi 1967 (66) ITR 147 (SC), Court held that notice under Section 148 cannot be regarded as mere procedural requirement. It is a condition precedent for initiation of proceeding for assessment. 36. In Y. Narayana Chetty and another v. Income Tax Officer, Nellore and others 1959 (35) ITR 388 (SC), it was held, that, if notice issued is invalid or not properly served, any proceeding taken by A.O. to back assess, would be illegal and void. 37. A Constitution Bench, in Sardar Baldev Singh v. Commissioner of Income Tax, Delhi (1960) 40 ITR 605 (SC), a pari materia provision, i.e., Section 34 under old Indian Income Tax Act, 1922 (hereinafter referred to as "Act, 1922") was considered and it was held that A.O. having power to issue notice should be a particular A.O. having jurisdiction....
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....Competent A.O. This is clear from a bare reading of Section 292BB of Act, 1961 which reads as under: - "292BB. Where an assessee has appeared in any proceedings or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the Provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was- (a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner: Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment." 46. The curability permitted under Section 292BB is with regard to service of notice upon Assessee and not with regard to competence of authority who has issued notice. 47. A similar question was considered in Commissioner of Income Tax, Gujarat-II v. Kurban Hussain Ibrahimji Mithiborwala 1972 (4) SCC....