DCIT Vs Proficient Commodities Pvt. Ltd. (ITAT Kolkata)
The appeal filed by the Revenue and the cross-objection filed by the assessee before the Income Tax Appellate Tribunal (ITAT), Kolkata, arose from the order of the Commissioner of Income Tax (Appeals)-4, Kolkata, for Assessment Year 2012-13. The Revenue challenged the deletion of additions relating to alleged bogus losses in the National Multi Commodity Exchange (NMCE) and unexplained share capital, while the assessee raised a legal challenge to the validity of the assessment on jurisdictional grounds.
The Tribunal first considered the assessee’s cross-objection, which was filed with a delay of 600 days. After considering the reasons furnished in the condonation petition, the Tribunal condoned the delay and admitted the cross-objection for adjudication.
The assessee contended that the notice under Section 143(2) had been issued by the Income Tax Officer, Ward-5(2), Kolkata, who did not possess jurisdiction over the assessee company. Although the assessment under Section 143(3) was subsequently completed by the Deputy Commissioner of Income Tax, Circle-10(2), Kolkata, the Deputy Commissioner had not issued a notice under Section 143(2). The assessee argued that the assessment was therefore void for want of proper jurisdiction.
The Revenue argued that since the assessment order had ultimately been passed by the Deputy Commissioner having jurisdiction, the assessment should not be invalidated merely because the notice under Section 143(2) had been issued by the Income Tax Officer.
