ITAT Kolkata Rules ITO Lacked Jurisdiction in Issuing Notice u/s 143(2), Quashes Assessment Proceedings.

The recent decision by the Income Tax Appellate Tribunal (ITAT) in Kolkata addressed the jurisdictional validity of a notice issued under Section 143(2) of the Income Tax Act, 1961. The case involved an appeal by an assessee challenging an income addition under Section 69A. The core issue was whether the Income Tax Officer (ITO) had the jurisdiction to issue the notice, as the income declared exceeded the threshold requiring a higher authority's involvement. The ITAT concluded that the ITO lacked jurisdiction, leading to the quashing of the assessment proceedings, highlighting the critical nature of jurisdictional adherence in tax assessments.