Venetian LDF Projects LLP Vs ACIT (ITAT Delhi)
Material Facts
The assessee filed two appeals for Assessment Years 2014-15 and 2015-16 against the orders of the Commissioner of Income Tax (Appeals)-1, Gurgaon, both dated 15.03.2019, arising from assessments completed under Section 143(3) of the Income-tax Act, 1961.
During the hearing before the Tribunal, the assessee sought to raise an additional ground challenging the validity of both assessments on the basis that they were not preceded by valid notices under Section 143(2) issued by the competent jurisdictional authority. The returns declared losses of ₹3,46,94,465 for AY 2014-15 and ₹1,77,00,320 for AY 2015-16. The notices under Section 143(2) had been issued by ITO, Ward-4(4), Gurgaon.
Procedural History
The assessments were completed by ACIT, Circle-4(1), Gurgaon, on 26.12.2016 and 26.12.2017. The assessee challenged the assessments before the Commissioner (Appeals), whose orders were passed on 15.03.2019. Before the Tribunal, the assessee raised an additional jurisdictional ground contending that the scrutiny notices under Section 143(2) were issued by an officer lacking pecuniary jurisdiction.
The Tribunal admitted the additional ground, observing that it went to the root of the matter and all relevant facts were already available on record.
Legal Issue
Whether assessments under Section 143(3) were valid where the notices under Section 143(2) had been issued by an Income Tax Officer who lacked pecuniary jurisdiction under CBDT Instruction No. 1/2011.
