Anita Basak Vs ITO (ITAT Kolkata)
Wrong AO Issuing 143(2) Is Fatal — Pecuniary Jurisdiction Breach Quashes Entire Assessment
Kolkata ITAT quashed the assessment of Anita Basak for AY 2017-18 after holding that the notice u/s 143(2) was issued by a non-jurisdictional AO, rendering the entire assessment invalid. The Assessee had declared income of ₹20.45 lakh in a metro city (Kolkata). As per CBDT Instruction No. 1/2011 dated 31-01-2011, cases exceeding ₹20 lakh in metro cities fall within the jurisdiction of DC/AC, whereas the notice u/s 143(2) dated 24-09-2018 was issued by ITO Ward 29(3).
The Tribunal rejected Revenue’s plea that the lapse was merely administrative and held that jurisdictional defect in issuing 143(2) strikes at the root of the assessment. Since the assessment u/s 143(3) was framed by a different AO (ITO Ward 30(2)) without a valid jurisdictional notice, it was unsustainable in law. Relying on Calcutta HC rulings in PCIT vs Shree Shoppers Ltd. and PCIT vs Nopany & Sons, the Tribunal quashed the assessment in toto and allowed the Assessee’s appeal
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata-20 (hereinafter referred to as the “Ld. CIT(A)”] dated 30.06.2025 for the AY 2017-18.
