TaxTMI 
TaxTMI 
2022 (6) TMI 635
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 2. The assessee has raised the following grounds of appeal:- 1. For that the Ld. CIT(A) erred in confirming the order passed by the AO U/s. 143(3) when the notice u/s. 143(2) was issued by the AO having no jurisdiction over the assessee and therefore the entire assessment proceedings should be held as-initio-void. 2. For that the Ld. CIT(A) erred in confirming the disallowance amounting to Rs. 13,65,536/- being the interest paid which was allowable deduction while computing the total income and even otherwise the issue was outside the scope of limited scrutiny. 3. For that on the facts and circumstances of the case the disallowance of interest expenses was unjustified and not in accordance with law. 3. At the outset, Ld. Counsel f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dt. 29-07-2016 by the ITO, W-34(2), Kolkata, placed at page-8 of the paper book. Referring to the claim made by Ld. Counsel for the assessee, the notice issued u/s. 143(2) of the Act was not valid in view of the said CBDT Instruction No. 1/2011 dated 31.01.2011. We find that this tribunal in the case of Shri Sukumar Chandra Sahoo (supra) has dealt with similar issue in relevant findings from this order at para 4.5 and 6, is reproduced herein below:- "4. Brief facts of the case are that the assessee is an individual who filed his return of income for the year under consideration wherein he declared total income to the tune of Rs. 50,28,040/-. The Ld. AR for the assessee submitted that as per the CBDT Instruction No. 1/11 (F. No. 187/12/20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lared (Mofussil areas) Income Declared (Metro cities) ITOs ACs/DCs ITOs DCs/ACs Corporate returns Upto Rs. 20 lacs Above Rs. 20 lacs Upto Rs. 30 lacs Above Rs. 30 lacs Non corporate returns Upto Rs. 15 lacs Above Rs. 15 lacs Upto Rs. 20 lacs Above Rs. 20 lacs Metro charges for the purpose of above instructions shall be Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Mumbai and Pune. The above instructions are issued in supersession of the earlier instructions and shall be applicable with effect from 1-4-2011." 5. From a perusal of the above Instruction of the CBDT it is evident that the pecuniary jurisdiction conferred by the CBDT on ITOs is in respect to the 'non corporate returns' filed wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated 31.01.2011 and the assessee has filed the return of income on 29.03.2013 declaring total income of Rs. 50,28,040/-. As per the CBDT Instruction the monetary limits in respect to an assessee who is an individual which falls under the category of 'non corporate returns' the ITO's increased monetary limit was upto Rs. 15 lacs; and if the returned income is above Rs. 15 lacs it was the AC/DC. So, since the returned income by assessee an individual is above Rs. 15 lakh, then the jurisdiction to assess the assessee lies only by AC/DC and not ITO. So, therefore, only the AC/DC had the jurisdiction to assess the assessee. It is settled law that serving of notice u/s. 143(2) of the Act is a sine qua non for an assessment to be made ....