2026 (5) TMI 1253

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....of the assessment order dated 17.03.2022 u/s. 147 read with section 144 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by ITO, Ward-36(1) for AY: 2016-17. 2. On hearing both sides we find that primarily the ld. counsel has prayed for disposal of ground No. 3 which goes to the route of assumption of jurisdiction has allegedly while completing the assessment notice u/s. 143(2) of the Act has not been served. The assessee is a hindu undivided family and the return was filed showing long term capital gain through trading shares of M/s Yamini Investment Company Ltd. which department has categorized as a penny stock and the case of assessee was reopened and the addition was made which was challenged before the Ld. CI....

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....ent. As regards the contention under section 151A, it is observed that although the NFAC notification conferring faceless jurisdiction was issued on 29.03.2022, the substantive jurisdiction to reopen under section 147 was exercised by the Assessing Officer well before that date, based on valid approval and credible material. The faceless procedural framework is administrative in nature and does not affect the legality of jurisdiction already vested u/s. 147. Accordingly, the reassessment is held to have been validly initiated and completed in accordance with law. The grounds challenging jurisdictional validity, including the additional ground (Ground No. 11), are therefore found devoid of merit and are hereby dismissed." 3. Ld. ....

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....tted that the content of the alleged notice u/s. 143(2) is not available in its system and, therefore, a copy cannot be furnished. In other words, the very notice on which jurisdiction is claimed does not exist in retrievable form in official records. We find substance in the contention that initiation noted in an order sheet, without availability of the notice itself, does not amount to valid issuance. A jurisdictional notice must exist in substance, not merely as a clerical entry. If the contents of the notice are unavailable, it cannot be verified whether it was validly generated, or legally issued. 6. It further comes up that the date 30.03.2021, which the AO claims as the date of initiation of notice u/s. 143(2), in fact pertains to....