2026 (8) TMI 1559

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....inst the assessment order passed by NFAC, (hereinafter referred to as the 'Ld. AO') u/s 147 r.w.s 144B of the Income Tax Act (hereinafter referred to as 'the Act') on 21/09/2021 for the Assessment Year 2017-18. 2. At the outset, we find that the assessee has raised the additional ground before us challenging the validity of assessment proceedings on the ground that notice u/s 148 of the Act has been issued by ITO, Ward-46(3), 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 for adjudic....

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....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 Court. For the sake of convenience, the entire order is reproduced herein under: "Petitioner is impugning a notice dated 30th March, 2019 under section 148 of the Income Tax Act, 1961 (the Act) for A.Y. 2012-13 and order passed on 18th November, 2019 rejecting Petitoner's objection to reopening on various grounds. 2. The primary ground that has bee....

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....ministrative 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 authority in law. 6. In the circumstances, we have no hesitation in setting aside the notice dated 30th March, 2019. 7. Consequently the order dated 18th November, 2019 rejecting Petitioner's objection is also quashed and set aside." 5. Since the issue is covered by the decision of Hon'ble Bombay High Court, the reliance placed by the Ld. DR....