INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Section 148 notice issued by AO having no jurisdiction over assessee - Objection raised by assessee under section 124(3) within one month of receipt of notice

Notice was issued under section 148 on 22-3-2015 by ITO Ward-2(2), Kolkata, after recording reasons for reopening. Assessee complied with the notice by filing income tax return on 16-4-2015 declaring -Nil-income. Thereafter, assessee requested for reasons for reopening of assessment under section 147 vide Letter, dated 24-8-2015. Thereafter, ITO Ward-2(2), Kolkata, issued notice under section 143(2). Then file was transferred to AO having jurisdiction over assessee, i.e., ITO, Ward-4(3), Kolkata. ITO, Ward-4(3), Kolkata, issued notice under section 143(2) on 22-12-2015. He also issued notice under section 142(1) on 22-12-2015. Assessee filed objections on 7-3-2016 before the ITO, Ward-4(3), Kolkata. Assessee objected to the notice issued under section 148 on 20-4-2015. Assessee contended ITO Ward-2(2), Kolkata, had no jurisdiction over the case of assessee, in view of the transfer of jurisdiction on the basis on Pin code. This letter was received on 20-4-2015 by ITO Ward-2(2), Kolkata. ITO Ward-4(3), Kolkata, passed order under section 144(1)/147 28-3-2016 determining total income of the assessee at Rs. 3 crores. Held: Admittedly, AO who issued notice under section 148 had no jurisdiction over assessee. Objections were raised by assessee under section 124(3), within one month of receipt of notice under section 148 and AO who issued notice under section 148, accepted that he had no jurisdiction on this case and thus transferred case to ITO, Ward-4(3), who had jurisdiction. Accordingly, a notice issued by non-jurisdictional AO was illegal and also, the consequent order framed under section 144(1)/147.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

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