Ashok Devichand Jain Vs Union of India and Others (Bombay High Court)
The Bombay High Court allowed a petition challenging a notice dated 30 March 2019 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2012-13, as well as the order dated 18 November 2019 rejecting the petitioner’s objections to the reopening of assessment.
The principal issue raised by the petitioner was that the Income Tax Officer (ITO) who issued the notice under Section 148 lacked jurisdiction. The petitioner relied on CBDT Instruction No. 1/2011 dated 31 January 2011, which provides that where a non-corporate assessee has returned income exceeding ₹20 lakh, jurisdiction lies with the Deputy Commissioner or Assistant Commissioner and not with the Income Tax Officer.
The petitioner had declared income of approximately ₹64.34 lakh and therefore contended that the jurisdiction vested with the DC/AC. Consequently, the notice issued by the ITO was alleged to be without authority in law.
The Court considered the affidavit filed by the concerned ITO, who admitted that the notice had been issued despite the jurisdictional defect. The officer explained that the petitioner’s PAN remained with the ITO’s ward and that insufficient time was available before 31 March 2019 to migrate the PAN to the jurisdictional DCIT after obtaining the necessary administrative approvals.
