The Tax Publishers2020 TaxPub(DT) 0904 (Del-Trib) : (2020) 181 ITD 0030

INCOME TAX ACT, 1961

Section 120(1)(2)(4)

Addl. CIT could function as an AO when jurisdiction has been assigned to him by virtue of directions or orders issued under section 120(4)(b). However, in the instant case revenue department failed to produce any order or direction of Board or any other authority under section 120(1)(2) and (4) empowering Addl. CIT, Range-23, New Delhi, to act as an AO accordingly, Addl. CIT, Range-23, New Delhi did not assume jurisdiction over assessee legally and validly and, therefore, impugned assessment order framed by him was vitiated and illegal and without jurisdiction.

Income tax authorities - Jurisdiction - Addl. CIT acted as AO without there being any direction or order issued under section 120(1)(2)(4) -

Assessee's case was assigned to Addl. CIT, Range-23, New Delhi, vide Order of CIT, Range-23, New Delhi, dated 9-12-2013. AO (Addl. CIT, Range-23, New Del) made addition to assessee's income. Assessee challenged this on the ground that Addl. CIT, Range-23, New Delhi, did not assume jurisdiction legally hence assessment framed by him was illegal and without jurisdiction.Held: Addl. CIT could function as an AO when jurisdiction has been assigned to him by virtue of directions or orders issued under section 120(4)(b). However, in the instant case revenue department failed to produce any order or direction of Board or any other authority under section 120(1)(2) and (4) empowering Addl. CIT, Range-23, New Delhi, to act as an AO accordingly, Addl. CIT-Range-23, New Delhi did not assume jurisdiction over assessee legally and validly and, therefore, impugned assessment order framed by him was vitiated and illegal and without jurisdiction.

REFERRED : Harvinder Singh Jaggi v. Asstt. CIT (2016) 67 Taxmann.com 109 (Del) : (2016) 157 ITD 869 (Del-Trib) : 2016 TaxPub(DT) 1288 (Del-Trib), Mega Corpn. Ltd. v. Addl. CIT (2015) 62 Taxmann.com 351 (Del) : (2015) 155 ITD 1019 (Del-Trib) : 2015 TaxPub(DT) 4298 (Del-Trib), Tata Sons Ltd. v. Asstt. CIT (2017) 76 Taxmann.com 126 (Mum) : (2016) 162 ITD 450 (Mum-Trib) : 2016 TaxPub(DT) 5055 (Mum-Trib), Ajantha Industries v. CBDT (1976) 102 ITR 281 (SC) : 1976 TaxPub(DT) 601 (SC), Bansilal B. Raisoni & Sons v. Asstt. CIT (2019) 101 taxmann.com 20 (Bom) : (2018) 260 Taxman 281 (Bom) : 2018 TaxPub(DT) 7785 (Bom-HC), Abhishek Jain v. ITO (2018) 94 Taxmann.com 355 (Del) : (2018) 405 ITR 1 (Del) : 2018 TaxPub(DT) 3029 (Del-HC), CIT v. S.S. Ahluwalia (2014) 46 Taxmann.com 169 (Del) : (2014) 225 Taxman 131 (Del) (Mag) : 2014 TaxPub(DT) 1647 (Del-HC) and Pr. CIT v. Mega Corpn. Ltd. [ITA No. 128 of 2016, dated 23-2-2017].

FAVOUR : In assessee's favour.

A.Y. : 2011-12

IN THE ITAT DELHI 'E' BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT