Kalinga Institute of Industrial Technology Vs DCIT (Orissa High Court)
The petitioner challenged the assessment order dated 30.12.2016 for Assessment Year 2014-15, the consequential demand notice issued under Section 156 of the Income Tax Act, and the notice issued under Section 143(2), contending that they were illegal, without jurisdiction, and violative of the principles of natural justice. The assessment order raised an additional tax demand of ₹24,96,42,960. The writ petition specifically assailed the assessment order (Annexure-1), the demand notice (Annexure-2), and the notice under Section 143(2) (Annexure-13). The Joint Commissioner of Income Tax (OSD) (Exemption), Bhubaneswar, filed an affidavit stating that jurisdiction over the assessee was validly vested with the concerned exemption circle and that the assessment under Section 143(3) had been completed based on the materials available on record. The High Court observed that the affidavit itself established that jurisdiction vested with the Commissioner of Income Tax (OSD) (Exemption). Consequently, it held that the notice issued under Section 143(2) by the Assistant Commissioner of Income Tax, Corporate Circle-1(2), Bhubaneswar, was without jurisdiction. The Court, however, declined to express any opinion on the assessment order and the consequential demand notice because both were appealable orders under the Income Tax Act. Accordingly, the High Court quashed the notice issued under Section 143(2) while leaving it open to the competent authority having jurisdiction to issue a fresh notice in accordance with law. The writ petition was allowed only to the extent of setting aside the jurisdictionally defective notice, without interfering with the assessment order or demand notice.
