TaxTMI 
TaxTMI 
2022 (9) TMI 89
X X X X Extracts X X X X
X X X X Extracts X X X X
....he objection of the petitioner (Annexure no.13). (iii) Issue writ, order or direction in the nature of Prohibition restraining the respondent no. 1 from completing the reassessment proceeding u/s 148 of the Act, for A.Y. 2017-18." 3. Briefly stated facts of the present case are that for the assessment year in question i.e. 2017-18, the petitioner, which is a corporate entity, filed its return of income on 11.10.2017 with the Income Tax Officer (ITO-2(1), Moradabad disclosing total income of Rs. 32,57,900/. It has been admitted by the learned counsel for the petitioner before us that ITO Ward-2(1) is the Assessing Officer who has territorial jurisdiction over the petitioner. Facts. 4. The case of the petitioner is that since monetary limit fixed for assessment by the ITO for return is upto Rs. 15 lacs and if it is above Rs. 15 lacs, the assessment was to be made by Assistant/Deputy Commissioner, therefore, for that reason the assessment for the Assessment Year 2017-18 was completed by the Assistant Commissioner of Income Tax, Moradabad (ACIT) vide assessment order dated 26.11.2019 under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act, 1961). There....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 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 subsection (2) of section 120 or any other provision of this Act, and the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director who is directed under clause (b) of subsection (4) of that section to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act;" (ii) Section 120 of the Act, 1961 provides for jurisdiction of income tax authorities as under:- "Jurisdiction of income-tax authorities:- 120. (1) Income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or, as the case may be, assign to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities. Explanation:- For the removal of doubts, it is hereby declared that any income- tax authority, being an aut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....idered necessary or appropriate for the proper management of the work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and functions in respect of any area or persons or classes of persons or incomes or classes of income or cases or classes of cases; and, where such powers and functions are exercised and performed concurrently by the Assessing Officers of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct, and, further, references in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such higher authority and any provision of this Act requiring approval or sanction of any such authority shall not apply. (6) Notwithstanding anything contained in any direction or order issued under this section, or in section 124, the Board may, by notification in the Official Gazette, direct that for the purpose of furnishing of the return of income or the doing of any other act or thing under this Act or any rule made thereunder by any person ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sment, whichever is earlier; (b) where he has made no such return, after the expiry of the time allowed by the notice under sub-section (2) of section 115WD or subsection (1) of section 142 or under sub-section (1) of section 115WH or under section 148 for the making of the return or by the notice under the first proviso to section 115WF or under the first proviso to section 144 to show cause why the assessment should not be completed to the best of the judgment of the Assessing Officer, whichever is earlier. (c) Where an action has been taken under section 132 or section 132A, after the expiry of one month from the date on which he was served with a notice under sub-section (1) of section 153A or sub-section (2) of section 153C or after the completion of the assessment, whichever is earlier. (4) Subject to the provisions of sub-section (3), where an assessee calls in question the jurisdiction of an Assessing Officer, then the Assessing Officer shall, if not satisfied with the correctness of the claim, refer the matter for determination under sub-section (2) before the assessment is made. (5) Notwithstanding anything contained in this section or in any direction or order is....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s made a return under sub-section (1) of Section 139, who has been served with a notice under sub-section (1) of Section 142 or sub-section (2) of Section 143. Given the provision of clause (a) of sub-section (3) of Section 124, no person is entitled to call in question the jurisdiction of an Assessing Officer after expiry of one month from the date on which he is served with such notice, whichever date is earlier. Sub-section (4) of Section 124 mandates the Assessing Officer to refer the matter for determination under sub-section (2) before the assessment is made, if he is not satisfied with the correctness of the claim of the assessee calling in question the jurisdiction of an Assessing Officer, subject to the provisions of sub-section (3). Sub-section (5) of Section 124 which begins with a non-obstante clause, is as under:- "(5) Notwithstanding anything contained in this section or in any direction or order issued under section 120, every Assessing Officer shall have all the powers conferred by or under this Act on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax Bareilly. 19.2.2018." 15. The learned counsel for the petitioner has also referred to the jurisdictional chart enclosed with the objection against issuance of notice under Section 148, showing Assessing Officer-wise jurisdiction in respect of Corporate cases. 16. It is reiterated that Sub-section (1) of Section 124 of the Act, 1961 provides that where by virtue of any direction or order issued under subsection (1) or sub-section (2) of section 120, the Assessing Officer has been vested with jurisdiction over any area, within the limits of such area, he shall have jurisdiction- (a) in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situate within the area, and (b) in respect of any other person residing within the area. 17. Thus, under sub-section (1) of Section 124 of the Act, 1961 the Assessing Officer who has been vested with jurisdiction over any area, shall have jurisdiction within the limits of such area. Sub-section (5) of Section 124 of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction(1), the power can also be exercised, if directed by the Board, by authorities higher in rank. Under sub-section (2), the Board can issue orders in writing for exercise of power and performance of functions by the Income-tax Authorities and while doing so in terms of sub-section (3), the Board can take into consideration and have regard to the four-fold criteria namely, territorial area; persons or classes of persons; incomes or classes of income; and cases or classes of cases. Thus, the Act does not authoritatively confer exclusive jurisdiction to specific Income Tax Authority. It is left to the Board to issue directions for exercise of power and functions taking into consideration territorial area, class/types of persons, income and case, and Board have been given wide power and latitude. The said Section by necessary implication postulates and acknowledges that multiple or more than one Assessing officer could exercise jurisdiction over particular assessee. Concurrent jurisdictions are therefore not an anathema but an accepted position under the Act. The term "jurisdiction" in Section 120 of the Act has been used loosely and not in strict sense to confer jurisdiction exclus....