TaxTMI 
TaxTMI 
2021 (3) TMI 266
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....htra is illegal and without jurisdiction, more so, as ITO at Malegaon was never had any valid jurisdiction in the matter and no order ever passed u/s.127 (2) of the I.T. Act for transferring the existing jurisdiction from Meerut, U.P. to Malegaon Nasik, Maharashtra. 2. That without prejudice to G.No.1, transfer of jurisdiction from Nasik (Maharashtra) to Meerut (U.P.) vide order u/s.127 (2) passed by Pr. CIT-1, Nasik (Maharashtra) is unsustainable for not complying with the mandatory provisions of sec. 127 (1) r/w sec. 127 (3) of the Act which mandates issuing of show cause notice and personal hearing to the assessee before passing order to transfer the case where the new officer is not situated in the same city, which non compliance mak....
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....nd notice under section 143(2) Dated 18.09.2015 was issued by the ITO, Ward-2, Malegaon and the same served upon the assessee through post as well as e-mail ID. Later on the proceedings in case along with the case record was transferred from the ITO, Ward-2, Malegaon to the O/o the ITO, Ward-2(2), Meerut in compliance to the order passed by the Pr. CIT-I, Nasik. The A.O. noted that assessee herself had made a request before the ITO, Ward-2, Malegaon to transfer the case to Meerut. Notice under section 142(1) dated 16.12.2016 was issued for compliance. The A.O. noted that there is a difference as per TDS statement [26AS]. In the absence of explanation of assessee, addition of Rs. 55,700/- was made. The A.O. also noted that in the return asse....
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.... to Nasik. The assessee further submitted that return was filed on 12.11.2014. The first notice under section 143(2) was to be issued on or before 30.09.2015. Notice under section 143(2) Dated 18.09.2015 was issued by ITO, Ward-2, Malegaon (Nasik). The assessee filed return of income at Meerut and his PAN is also at Meerut. The assessee has no connection with Malegaon (Nasik). Thus, the correct jurisdiction of the assessee was with ITO, Meerut. Notice under section 143(2) up to 30.09.2015 has been issued only by ITO, Ward-2, Malegaon (Nasik) vide notice Dated 18.09.2015. The jurisdictional ITO at Meerut never issued notice under section 143(2) of the I.T. Act, 1961. No Order under section 127 of the I.T. Act, 1961 for transfer of case from ....
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....TO at Malegaon has no jurisdiction over the matter which was ultimately accepted and the case of assessee is transferred to Meerut. However, no opportunity have been given while passing the Order under section 127 of the I.T. Act, 1961. It is not clarified as to how the case of assessee was transferred from Meerut to Malegaon. No notice under section 143(2) have been issued by jurisdictional ITO at Meerut within the period of limitation, therefore, entire assessment order is nullity and bad in Law. In support of the contention Learned Counsel for the Assessee relied upon the following decisions. 4.1. Judgment of Allahabad High Court in the case of CIT-II, Lucknow vs., M/s. U.P. Electronics Corp. Ltd., Lucknow in Income Tax Appeal No.79 of ....
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....the case of Manoj Kumar vs., ACIT [2020] 79 ITR (Trib.) 158 (Del.) in which it was held that "notice under section 143(2) for commencing scrutiny assessment was issued by non-jurisdictional ITO. It was, therefore, held that assessment order is void abinitio and was liable to be quashed." 4.4. Learned Counsel for the Assessee also submitted that the Ld. CIT(A), Meerut in subsequent A.Y. 2015-2016 vide Order Dated 06.04.2018 on the same facts quashed the assessment order as no jurisdictional notice under section 143(2) have been issued by jurisdictional ITO, Meerut [PB-1 to 16]. 5. On the other hand, the Ld. D.R. relied upon the Orders of the authorities below and submitted that since the Ld. CIT(A) did not adjudicate upon this issue, there....
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....y connection at Malegaon (Nasik). These facts clearly show that assessee had been filing the return of income at Meerut even for earlier years and filed return of income for assessment year under appeal at Meerut. No material or Order under section 127 have been produced before us as to how the case of assessee was transferred from Meerut to Malegaon (Nasik). Therefore, the ITO at Malegaon (Nasik) was having no jurisdiction over the case of the assessee. Admittedly, no notice under section 143(2) have been issued by ITO, Meerut who was the jurisdictional ITO in the case of the assessee. Whatever notice under section 143(2) Dated 18.09.2015 was issued by ITO, Malegaon (Nasik) was not having any jurisdiction over the case of the assessee. The....