The Tax Publishers2020 TaxPub(DT) 1272 (Del-Trib)

INCOME TAX ACT, 1961

Section 153A

Jurisdiction over assessee, i.e., M/s Pride Residency Pvt. Ltd. lied with Asstt. Commissioner of Income, Circle-20(1), New Delhi. Thus, it was evident that impugned assessment order in the name of M/s Pride Residency Private Ltd. had been passed by ACIT, CC-13, New Delhi, without jurisdiction over the case. In view of lack of jurisdiction, impugned assessment order passed by ACIT, CC-13, New Delhi, in case of assessee was void-ab initio and accordingly quashed.

Search and seizure - Assessment under section 153A - Validity - Wrong assumption of jurisdiction

Search and seizure action was carried out at the premises of M/s. Satkar Fincap Private Ltd. and assessment was completed under section 153A read with section 143(3) by the Asstt. CIT, Central Circle-13, New Delhi. Assessee preferred revision application under section 264, before Pr. CIT, Central-2, New Delhi (DCIT), stating that the company, M/s Satkar Fincap P. Ltd. got amalgamated with M/s. Pride Residency Private Ltd. (i.e. assessee), vide Order of High Court. PCIT accordingly, through his Order, dt. 30-3-2015, under section 264, quashed assessment under section 153A and directed AO to re-assess income in the hands of the existing correct legal entity after giving proper opportunity of being heard to assessee. Pursuant to the direction of PCIT, the ACIT, CC-13, New Delhi, commenced assessment proceeding, but again he issued notice under section 153A in the name of M/s Satkar Fincap Private Ltd., which was objected to by the assessee, being notice issued on non-existent entity. The assessment, however, was completed in the name of M/s. Pride Residency Private Ltd. (i.e. the assessee). Held: Jurisdiction over assessee, i.e., M/s Pride Residency Pvt. Ltd. lied with Asstt. Commissioner of Income, Circle-20(1), New Delhi. Thus, it was evident that impugned assessment order in the name of M/s Pride Residency Private Ltd. had been passed by ACIT, CC-13, New Delhi, without jurisdiction over the case. In view of lack of the jurisdiction, impugned assessment order passed by ACIT, CC-13, New Delhi, in the case of assessee was void-ab initio and accordingly quashed.

REFERRED : Jurisdiction over assessee, i.e., M/s Pride Residency Pvt. Ltd. lied with Asstt. Commissioner of Income, Circle-20(1), New Delhi. Thus, it was evident that impugned assessment order in the name of M/s Pride Residency Private Ltd. had been passed by ACIT, CC-13, New Delhi, without jurisdiction over the case. In view of lack of the jurisdiction, impugned assessment order passed by ACIT, CC-13, New Delhi, in the case of assessee was void-ab initio and accordingly quashed.

FAVOUR : in assessee's favour

A.Y. :

IN THE ITAT, DELHI BENCH

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