TaxTMI 
TaxTMI 
2019 (9) TMI 1740
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....addition was restored to the A.O. with a direction to verify the same. The appeal of assessee was partly allowed. 3. The assessee in the present appeal has challenged the Order of the Ld. CIT(A) in all the three additions as well as challenged the order passed by the A.O. because he did not assume the jurisdiction legally and validly. The assessee also raised following additional grounds : "1. That the following two Additional grounds have been taken before Hon'ble ITAT : Addl. G.No.1 (Taken as G.No.1 in Form-36) That the Addl. CIT Range-23 New Delhi, since did not assume the jurisdiction legally validly, hence the impugned asstt. framed by Addl. CIT Range-23, New Delhi is illegal and without jurisdiction. Addl. G. No.2 That under the facts and circumstances the Ld. CIT (A) erred in law as well as on merits in not admitting the additional evidences tiled under Rule-46A." 3.1. The ITAT, Delhi E-Bench decided the appeal of assessee vide Order dated 25.05.2018. In this order the Tribunal admitted the above additional grounds of appeals for adjudication. The Tribunal set aside the impugned orders on the above additions and restored the matter back to the file of A.O. for ....
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....sed by the Board or made available to confer the jurisdiction as A.O. to the Addl. CIT, Range-23, New Delhi. He has submitted that assessee has filed application under RTI Act Dated 13.04.2018 asking for the following information and documents : (i) Copy of the Order under section 127/124/120 as the case may be passed by Pr. Commissioner of Income Tax or any other authority for transferring the case to Addl. CIT, Range-23. (ii) Copy of relevant order passed by CBDT or any other statutory authority, if any, conferring the power and jurisdiction to Pr. Commissioner of Income Tax or any other authority for passing the Orders for transfer of case to Addl. CIT, Range-23 [PB 7]. 5.2. He has submitted that Revenue Department has filed a reply to the aforesaid RTI Application Dated 08.05.2018 [PB 9], in which, in reply to the Points 1 and 2, it was informed that "before restructuring, the case was under Addl. CIT, Range-23, which, upon post restructuring converted to Circle-28(1)." Learned Counsel for the Assessee further submitted that no such jurisdiction order under section 120(4) have been provided to the assessee. It would show that no such order was in existence. He has, therefo....
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....ke over proceedings only after a proper order of transfer under section 127(1) or 127(2) of proceedings." 5.5. Order of ITAT, Mumbai D-Bench in the case of Tata Sons Ltd., vs. ACIT, Circle-2(3) [2017] 162 ITD 450 (Mum.) in which it was held as under : "Assessment has to be completed by authority who has initiated proceedings for making assessment and any other authority can take over proceedings only after a proper order of transfer under section 127." "Additional Commissioner of Income Tax can perform functions and, exercise powers of an Assessing Officer only if he is specifically directed under section 120(4)(b)." 5.6. Judgment of Hon'ble Supreme Court in the case of Ajantha Industries vs. CBDT [1976] 102 ITR 281 (SC) in which it was held as under : "Section 127 of the Income-tax Act, 1961 - Income-tax authorities - Power to transfer cases - Whether while making an order of transfer under section 127, requirement of recording reasons is a mandatory direction under law and non-communication of same to assessee would not be saved by showing that reasons existed in file although not communicated to assessee - Held, yes." 5.7. Learned Counsel for the Assessee also submitted....
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....169 (Del.). (iii) Order of Hon'ble Delhi High Court in the case of Pr. Commissioner of Income Tax vs. Mega Corporation Ltd., Dated 23.02.2017 in ITA.No.128/2016. 6.1. The Ld. D.R. also produced the assessment record for perusal of the Bench. The Ld. D.R. also filed letter Dated 04.09.2019 of the ACIT, Circle-28(1) addressed to the Departmental Representative on record. It may be noted here that vide Order Dated 14.08.2019 when the matter was partly heard, the Ld. D.R. was directed to file copy of the jurisdictional order of the Addl. CIT, Range-23, New Delhi. The Ld. D.R. in pursuance to the above directions produced the assessment order as well as filed the aforesaid letter Dated 04.09.2019 of the present A.O. In the aforesaid letter of the A.O. it is stated that A.O. has not been able to yet find that order till now. It is also stated in this letter of the A.O. that consultations/guidance were also sought through different authorities on the issue of locating the order. However, as the matter pertains to pre-cadre restructuring which is handled by the erstwhile CIT-VIII and erstwhile Range-23, difficulty is being faced in locating the relevant files. Nevertheless, efforts are ....
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..... (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, assigned 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 authority higher in rank, may, if so directed by the Board, exercise the powers and perform the functions of the income-tax authority lower in rank and any such direction issued by the Board shall be deemed to be a direction issued under sub-section (1). (2) The directions of the Board under sub-section (1) may authorise any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it. (3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria, namely :- (a)....
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....erences 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 or class of persons, the income-tax authority exercising and performing the powers and functions in relation to the said person or class of persons shall be such authority as may be specified in the notification." 7.1. Section 124 of the I.T. Act, 1961 is also reproduced as under : "Jurisdiction of Assessing Officers. 124. (1) Where by virtue of any direction or order issued under sub-section (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 w....
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....ion 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 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 of the directions or orders issued under sub-section (1) or sub-section (2) of section 120." 7.2. According to Section 120(1) and (2) of the I.T. Act, the Board may assign to Income Tax Authorities to exercise any of the powers and perform of or any of the functions conferred on as the case may be under this Act to act as Income Tax Authorities. The Board may also issue directions or authorise any other Income Tax Authorities to issue orders in writing for exercise of powers and perform o....
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...., empowering the Addl. CIT, Range-23, New Delhi, to act as an Assessing Officer in the present case to pass the impugned assessment order. The Ld. D.R. contended that since it is mentioned in the assessment order that case was assigned to Addl. CIT, Range-23, New Delhi vide Order of the CIT, Delhi-VIII, New Delhi, Dated 09.12.2013, therefore, it is sufficient that Addl. CIT, Range-23, New Delhi, was having jurisdiction over the case of assessee. However, no Order or Notification in support of the above contention have been produced on record to satisfy the requirements of the Law. Mere mentioning of such Order Dated 09.12.2013 may not serve the purposes. The Ld. D.R. also relied upon Judgment of the Hon'ble Delhi High Court in the case of Pr. Commissioner of Income Tax vs. Mega Corporation Ltd., (supra), in which it is mentioned in para-2 that on 01.08.2007, a Notification was issued under section 120(2) conferring power upon Addl. CIT. Therefore, this Judgment would not support the case of the Revenue. It may be noted further that provisions of Section 124(3) of the I.T. Act would not be applicable in the case of the assessee because Addl. CIT, Range-23, New Delhi did not have jur....