2026 (1) TMI 238

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....x (Appeals). Kolkata-20 acted unlawfully in upholding the impugned assessment order framed u/s. 143(3) of the Act by the Ld. Income Tax Officer, Ward 30(2), Kolkata basing on an invalid notice dated 24-09-2018 issued u/s. 143(2) of the Act in contravention to the C.B.D.T. Instruction F. No. 225/157/2017/ITA-II Dated 23-06-2017 and the specious action on that account is absolutely arbitrary. unwarranted, and perverse." 2.1. The facts in brief are that the assessee filed the return of income u/s 139(1) of the Act on 22.10.2017, declaring total income of Rs. 20,45,560/-. The return was processed u/s 143(1) of the Act by CPC, Bangalore. Subsequently, the case was selected for scrutiny and notice u/s 143(2) of the Act was issued and served up....

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....ed on the decisions of CIT vs. Shankar Lall Goenka [2025] 174 taxmann.com 31 (Gauhati) vide order dated 25-04-2025 & C. Krishnan vs. ITO [2014] 52 taxmann.com 30 (Madras) dated 27-11-2014. 2.3. After hearing the rival contentions and perusing the materials available on record, we find merit in the argument of the ld. AR that notice u/s 143(2) of the Act dated 24.09.2018, was issued by the ITO, Ward 29(3), Kolkata, which is in violation of pecuniary jurisdiction of the CBDT instruction No.1/2011 (F. No. 187/12/2010-IT(A-1), Dated 31.01.2011. According to the said instruction, the ITO has pecuniary jurisdiction where the income is upto 20 lacs in the Metro Cities and 15 lacs in Mofussil areas whereas the DC/AC have jurisdiction above 20 la....

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....lkata, 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. 2.4. In the present case, the assessee filed the return of income u/s 139(1) of the Act on 22.10.2017, disclosing total income of Rs. 20,45,560/-. We note that notice u/s 143(2) was issued on 24.09.2018 by ITO ward 29(3), Kolkata which is in violation of the CBDT Instruction No.1/2011 (F. No. 187/12/2010-IT(A-1), Dated 31.01.2011. Therefore, the said notice has been issued by non-jurisdictional AO while the assessment was framed u/s 143(3) of the Act dehors the mandatory notice u/s 142 of the Act by ITO Ward 30(2) Kolkata which is invalid and cannot be sustained. The ....