TaxTMI 
TaxTMI 
2026 (10) TMI 29
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....without which entire proceedings are invalid and nonstarter. B. On the facts and circumstances of the case and in law, the notice u/s 143(2) issued by ACIT Circle 11(2) is invalid as per pecuniary jurisdiction of the assessee company as stated in CBDT Instruction No.1/2011 which is subsequently transferred to correct jurisdictional AO who passed assessment order i.e ITO Ward 11(4) Delhi. C. On facts and circumstances of the case and in law, there is no valid notice u/s 143(2) issued in this case by an AO who passed assessment order and accordingly the assessment order passed on the foundation of such notice is liable to be quashed. D. On facts and circumstances of the case, assessment order passed u/s 143(3) is invalid as being passed in transgression of scope of limited scrutiny case to verify applicability of section 56(2)(viib) for large share premium received by venturing into unexplained cash credits under section 68 of both share capital as well as share premium without taking prior approval of PCIT in converting limited scrutiny case." 3. The assessee claimed that the additional Grounds of appeal taken are neither willful and nor deliberately an....
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....ted 12.02.2026, dismissed the appeal of the assessee and confirmed the addition of INR 4,85,50,000/- made u/s 68 of the Act. 10. Aggrieved by the order of ld. CIT(A), assessee is in appeal before the Tribunal by taking various grounds of appeal mentioned in the appeal memo. 11. Before us, the assessee has taken additional Ground of appeal No. 2, challenging the validity of the assessment order based on the assumption of jurisdiction by issue of notice u/s 143(2) of the Act by the AO who was not having jurisdiction over the assessee in terms of CBDT Instruction No. 01/2011 dated 31.01.2011. Ld. AR submits that in the instant case, return of income was e-filed declaring total income at INR 24,91,540/-. Thus, in terms of CBDT Instruction No. 01/2011 dated 31.01.2011, jurisdiction over the assessee lies with the ITO however, the notice u/s 143(2) was issued by ACIT, Circle 11(2) Delhi though the order was passed by the ITO 11(4) without any order passed u/s 127 of the Act. Copy of issue notice u/s 143(2) is placed at page 20 of the Paper Book. Ld. AR submits that the hon'ble Bombay High Court in the case of Ashok Devichand Jain vs Union of India & Others reported in [2022] (3) TM....
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....13 of the impugned order specifically adverted to the above aspect and correctly held that "The ACIT, Circle 34(1), New Delhi has admittedly not recorded that he had reasons to believe that income chargeable to tax of the Assessee has escaped assessment. He continued reassessment proceedings initiated by the ITO, Ward 34(4) of the Act without independently recording reasons for reopening or issuing a fresh notice u/s 148 of the Act." Further the ITAT noted that "There is no order u/s 127 of the Act transferring the jurisdiction of the case from ITO, Ward 34(4) to ACIT, Ward 34(1). Thus this order of reassessment passed by the ACIT u/s 34(1) of the Act is without jurisdiction and hence is bad in law." 4. In the present memorandum of appeal no attempt has been made by the Revenue to aver whether in fact there was an order under Section 127 of the Act transferring the case to the ACIT, Circle 34(1). That being the position, the impugned order of the ITAT cannot be faulted. In view of the above conclusion, there is no occasion to examine the other questions urged by the Revenue in this appeal. 5. No substantial question of law arises. The appeal is dismissed." 16. ....
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....ard-9(4), Kolkata was having a valid jurisdiction to issue such notice u/s. 143(2) of the Act. The above factual position recorded by the Tribunal is not in dispute. Therefore, we are of the clear view that the Tribunal rightly allowed the assessee's appeal and quashed the scrutiny proceedings as defect in issuance of notice is incurable as it goes to the root of the matter. Thus, we find no ground to differ with the findings recorded by the learned Tribunal." 17. The Coordinate Bench of Delhi Tribunal in the case of Sapna Rastogi Vs. ITO reported in 2024 (8) TMI 1517 (ITAT, Delhi) has held the reassessment order as invalid as the notice u/s 148 was issued by the AO having no jurisdiction over the assessee. The relevant observations are as under:- 5. "We have given thoughtful consideration to the matter on record and the submissions. The assessee had filed a return of income on 07.07.2013 declaring the total income at Rs. 18,85,550/-. The assessee is an individual and, taking into consideration Instruction No. 01/2011 available at page 245 of the paper book, for non-corporate returns in case of non-metro cities (mofussil areas), the returns above R....
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....umstances as the judgements in the cases of Home Finders Housing Ltd. (supra) and Sagar Developers (supra) are in the context of the non-disposal of the objections and the judgement in the cases of Abhishek Jain (supra) and S.S. Ahluwalia (supra) are primarily concerned with territorial jurisdiction in regard to which there may be instance of concurrent jurisdiction of the two assessing officers. However, the case before us concerns the pecuniary jurisdiction vested by the Board and if that is not complied, the invoking of jurisdiction is vitiated and, consequently, the assessment order is vitiated. The ground No. 1 with sub-grounds in regard to this issue are sustained. 6. In the result, the appeal of the assessee is allowed and the assessment order is quashed." 18. Considering the peculiar facts on record, and by respectfully following the judicial pronouncements as relied upon herein above, we are of the considered opinion that when the jurisdiction lies with ITO however, the notice u/s 143(2) was issued by the ACIT, Circle 11(2), Delhi to assess income of the assessee which was beyond his jurisdiction, therefore, the notice so issued u/s 143(2) is bad in law and the....
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....5999041161017 ร ยคโขร ยฅโก ร ยคโฆร ยคยจร ยฅยร ยคยธร ยคยพร ยคยฐ ร ยคโ ร ยคยชร ยคโขร ยฅโก ร ยคยฆร ยฅยร ยคยตร ยคยพร ยคยฐร ยคยพ ร ยคยฆร ยคยฟร ยคยจร ยคยพร ยคโร ยคโข 16/10/2017 ร ยคโขร ยฅโน ร ยคยฆร ยคยพร ยคโร ยคยฟร ยคยฒ ร ยคโขร ยฅโฌ ร ยคโร ยคห ร ยคโ ร ยคยฏร ยคโขร ยคยฐ ร ยคยตร ยคยฟร ยคยตร ยคยฐร ยคยฃร ยฅโฌ ร ยคโขร ยฅโน ร ยคยธร ยฅโฌร ยคยฎร ยคยฟร ยคยค ร ยคยธร ยคโร ยคยตร ยฅโฌร ยคโขร ยฅยร ยคยทร ยคยพ ร ยคโขร ยฅโก ร ยคยฒร ยคยฟร ยคย ร ยคลกร ยฅยร ยคยจร ยคยพ ร ยคโร ยคยฏร ยคยพ ร ยคยนร ยฅห ร ยคโร ยคยฐ ร ยคยจร ยคยฟร ยคยฎร ยฅยร ยคยจร ยคยฒร ยคยฟร ยคโร ยคยฟร ยคยค ร ยคโขร ยคยพร ยคยฐร ยคยฃร ยฅโนร ยคโ / ร ยคยฎร ยฅยร ยคยฆร ยฅยร ยคยฆร ยฅโนร ยคโ ร ยคโขร ยฅโน ร ยคลร ยคยพร ยคโร ยคลก ร ยคยนร ยฅโกร ยคยคร ยฅย ร ยคโฆร ยคยญร ยคยฟร ยคลกร ยคยฟร ยคยจร ยฅยร ยคยนร ยคยฟร ยคยค ร ยคโขร ยคยฟร ยคยฏร ยคยพ ร ยคโร ยคยฏร ยคยพ ร ยคยนร ยฅห: This is for your kind information that the return of income filed by you for assessment year 2017-18 vide ack. no. 245999041161017 on 16/10/2017 has been selected for Limited Scrutiny and following issue(s) have been identified for examination: i. Share premium 2. ร ยคโกร ยคยธ ร ยคยธร ยคโร ยคยฌร ยคโร ยคยง ร ยคยฎร ยฅโก....
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....ยคยจร ยฅลร ยคลธ ร ยคโ ร ยคยชร ยคโขร ยฅโก ร ยคยธร ยคโร ยคยฆร ยคยฐร ยฅยร ยคยญ ร ยคโขร ยฅโก ร ยคยฒร ยคยฟร ยคย ร ยคยธร ยคโร ยคยฒร ยคโร ยฅยร ยคยจ ร ยคยนร ยฅหร ยฅยค 3. The evidence/information specified above has to be furnished online electronically through your E-filing account in incometaxindiaefiling.gov.in. Subsequent assessment proceedings shall also be conducted electronically through the 'E-Proceeding' facility of Income-tax Department. A brief note on 'E-Proceeding' is enclosed for your kind reference. 4. ร ยคยจร ยคยฟร ยคยฐร ยฅยร ยคยงร ยคยพร ยคยฐร ยคยฃ ร ยคโขร ยคยพร ยคยฐร ยฅยร ยคยฏร ยคยตร ยคยพร ยคยนร ยฅโฌ ร ยคโขร ยฅโก ร ยคยฆร ยฅลร ยคยฐร ยคยพร ยคยจ, ร ยคยฏร ยคยฆร ยคยฟ ร ยคโ ร ยคยตร ยคยถร ยฅยร ยคยฏร ยคโข ร ยคยนร ยฅโนร ยคโร ยคยพ ร ยคยคร ยฅโน ร ยคยธร ยฅโร ยคลกร ยคยจร ยคยพ /ร ยคยฆร ยคยธร ยฅยร ยคยคร ยคยพร ยคยตร ยฅโกร ยคล ร ยคยนร ยฅโกร ยคยคร ยฅย ร ยคยตร ยคยฟร ยคยถร ยฅโกร ยคยท ร ยคยชร ยฅยร ยคยฐร ยคยถร ยฅยร ยคยจร ยคยพร ยคยตร ยคยฒร ยฅโฌ (ร ยคยฏร ยฅโนร ยคโ) ร ยคยฏร ยคยพ ร ยคโฆร ยคยงร ยคยฟร ยคยฏร ยคยพร ยคลกร ยคยจร ยคยพ (ร ยคยฏร ยฅโนร ยคโ) ร ยคโขร ยฅโน ร ยคยฌร ยคยพร ยคยฆ ร ยคยฎร ยฅโกร ยคโ ร ยคลร ยคยพร ยคยฐร ยฅโฌ....