INCOME TAX ACT, 1961

Section 220

Recovery - Validity - Jurisdiction of ITO (TDS) to raise demand by way of issuing notices -

Challenge of assessee was directed against jurisdiction of ITO(TDS) to initiate a requisition by way of issuing notices. Assessee contended that ITO(TDS) had no jurisdiction to issue said notices. Instant writ petition was filed as far as in year 1997 and by an interim order, assessee was enjoying a stay of said notices. Held: The notices, were issued without jurisdiction and authority of law. Concerned officer had no jurisdiction whatsoever at that relevant point of time to issue such notices. Such notices were accordingly quashed and set aside. Even though said notices were set aside, the same would not preclude the Income Tax Authorities to take appropriate steps in accordance with law to initiate appropriate proceedings in respect of disputes that formed subject matter of notices. Revenue Authorities would also be entitled to rely upon the principles enshrined in section 14 of Limitation Act, 1963.

REFERRED : Cesc Limited & Anr. v. ITO (TDS) & Ors. (2007) 290 ITR 237 (Calcutta) : 2007 TaxPub(DT) 0873 (Cal-HC)

FAVOUR : In assessee's favour

A.Y. :

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