Assessment Proceedings and Validity of Section 143(2) Notices: Jurisdictional Clarity and Monetary Limit

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....onal Calcutta High Court in the case of PCIT vs. Shree Shoppers Ltd. and the decision of ITAT in the case of Shivam Finance vs. ACIT We will provide a detailed analysis of the case, covering key issues, discussions, findings, and their implications. Background: The case involves a dispute regarding the jurisdiction assumed by the Income Tax Officer (ITO), Ward-49(1), Kolkata, for issuing a notice under Section 143(2). The crux of the matter revolves around the validity of this notice and its impact on the subsequent assessment proceedings. Key Issues Involved: * Validity of Notice under Section 143(2): The primary issue in this case is whether the notice issued under Section 143(2) by the ITO, Ward-49(1), Kolkata, was valid. The noti....

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....essing Officer does not negate the requirement for a valid notice at the initiation of scrutiny. One crucial aspect highlighted in the judgment was the jurisdiction of the Assessing Officer based on the returned income of the assessee. The instruction from the Central Board of Direct Taxes (CBDT) specified that in case of metro cities, for corporate assesses declaring income above a certain threshold, the jurisdiction would lie with the DCs/ACs. In this case, the returned income exceeded the specified limit, and therefore, the jurisdictional Assessing Officer should have been the DCs/ACs. However, the notice under Section 143(2) was issued by the ITO, Ward-49(1), Kolkata, who did not have the jurisdiction. Despite the subsequent assessmen....