2026 (8) TMI 1562

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....gainst the assessment order passed by Ward- 35(2), Delhi (hereinafter referred to as the 'Ld. AO') u/s 143(3) of the Income Tax Act (hereinafter referred to as 'the Act') on 31/12/2019 for the Assessment Year 2017-18. 2. At the outset, we find that the assessee has raised the additional grounds before us challenging the validity of assessment proceedings on the ground that notice u/s 143(2) of the Act has been issued by ITO, Ward-35(2), Delhi instead of ACIT which is in violation of the pecuniary jurisdiction limits prescribed by the Central Board of Direct Taxes (CBDT) vide Instruction No.1/2011 dated 31/01/2011. This goes to the root of the matter and being a legal issue, the said additional ground is hereby admitted and taken up first....

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.... the notice u/s 143(2) of the Act. In our considered opinion, this argument of the Ld. DR is to be rejected, as the provisions of section 124(3) of the Act speak about the territorial jurisdiction whereas the issue in the instant case involves pecuniary jurisdiction. It is trite law that instructions issued by the CBDT are binding on the Income Tax Department and not following of the same would render the assessment void ab-initio. Further the issue is also covered by the decision of Hon'ble Bombay High Court in the case of Ashok Devichand Jain vs. Union of India through The Secretary dated 08.03.2022 reported in 452 ITR 43 (Bom), wherein the CBDT Instruction No.1/2011 dated 31.01.2011 have been duly considered by the Hon'ble Bombay High Co....

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....ts that such a defective notice has been issued but according to him, PAN of Petitioner was lying with ITO Ward (12)(3)(1), Mumbai and it was not feasible to migrate the PAN having returned of income exceeding Rs. 30 lakhs to the charge of DCIT, Circle 12(3)(1), Mumbai, as the time available with the ITO 12(3)(1) was too short to migrate the PAN after obtaining administrative approval from the higher authorities by 31st March, 2019. 5. The notice under section 148 of the Act is jurisdictional notice and any inherent defect therein is not curable. In the facts of the case, notice having been issued by an officer who had no jurisdiction over the Petitioner, such notice in our view, has not been issued validly and is issued without au....