INCOME TAX ACT, 1961

Section 143(3) Section 143(2) Section 92B

Assessment - Jurisdiction of AO - Notice issued beyond limitation under section 143(2) -

It was the claim of the assessee that as the Dy. CIT, Circle-1, Jalandhar was not vested with the jurisdiction over its case, therefore, the notice issued by him was devoid of any force of law and was liable to be filed. Finally, a notice under section 143(2), dt. 28-5-2014 was issued by the Dy. CIT, Circle-IV, Jalandhar, wherein the latter called upon the assessee to attend his office in respect of certain points in connection with the return of income submitted for the year under consideration viz. assessment year 2012-13. Subsequently, the Dy. CIT, Circle-IV, Jalandhar, vide his order passed under section 143(3), dt. 23-3-2015 framed assessment in the hands of the assessee.Held: CIT(A) was not right in holding that that the assessment framed by the Dy. CIT, Range-IV, Jalandhar on the basis of the notices issued under sections 143(2)/142(1) by the Dy. CIT/Asstt. CIT, Circle-1, Jalandhar is well in order. The inferences drawn by the CIT(A) as regards the validity of the transfer of jurisdiction over the case of the assessee from the Asstt. CIT/Dy. CIT, Circle-IV, Jalandhar to Asstt. CIT/Dy. CIT, Circle-1, Jalandhar, and vice versa cannot be summarily accepted at the very face of it. Both, the validity of the notice issued under section 143(2) as well as the consequential assessment thereafter framed under section 143(3), suffer from a jurisdictional defect, thus, the same can in no way be cured by taking support of the provisions of section 292B. The AO exercising the jurisdiction over the case of the assessee had failed to issue a notice under section 143(2) within the stipulated time period, therefore, the assessment framed by him under section 143(3), dt. 23-3-2015 san issuance of the aforesaid notice is absolutely bereft of any force of law and cannot be sustained.

Relied:Asstt. CIT v. Hotel Blue Moon (2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC)

REFERRED : Lqjwanti Cotton Gining v. ITO (ITA No. 395/Asr/2014), Asstt CIT v. Parvindar Vir Hans (ITA No. 88/Asr/2011), ) ITO v. NVS Builders (P) Ltd. (ITA No. 3729/Del/2012), CIT v. Cebon India Ltd. (2012) 347 ITR 583 (P&H-HC) : 2010 TaxPub(DT) 0579 (P&H-HC), Micro Spacematrix Solution (P) Ltd. v. ITO [ITA No. 669/Del/2012] and Umacharan Shaw & Bros. v. CIT (1959) 37 ITR 271 (SC) : 1959 TaxPub(DT) 0184 (SC).

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2013-14

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