INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Section 148 notice issued by an incompetent officer - On transfer of matter as per request, reassessment order framed by AO having jurisdiction over assessee, however, without issuing fresh notice

In assessee's case ITO-1(3), Lucknow had initiated reassessment proceedings under section 147 by issuing notice under section 148. During the coruse of assessment proceedings, assessee submitted to the ITO-1(3) that he was a Director in M/s. Surat Construction (P) Ltd., which was assessed in Range-6 and accordingly, jurisdiction in case of assessee was with ITO-6(3). The matter was transferred, on assessee's request, to Dy.CIT, Range-6, who, admittedly, was the AO having jurisdiction. Dy.CIT, Range-6 passed reassessment order, without issuing notice, either under section 148, or under section 143(2). Assessee challenged this.Held: As apparent notice under section 148 was issued by an incompetent officer, i.e., one who had no jurisdiction, and subsequently, on the objection of assessee with regard to jurisdiction, the matter was transferred to AO having jurisdiction, however a valid assessment could not be made by him without issuing fresh notice under section 148, AO, having jurisdiction over assessee, completed reassessment without issuance of notice under section 148, reassessment order passed was invalid and could not be sustained.

Followed:Pr. CIT v. Mohd. Rizwan [ITA No. 100 of 2017, dt. 30-3-2017].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

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