Kevin International Vs DCIT (ITAT Delhi)
Material Facts
The assessee, a partnership firm engaged in manufacturing electronic and electrical items, filed its return of income for Assessment Year 2012-13 on 27.09.2012 declaring total income of ₹23,73,025 after claiming deduction under Section 80IC of ₹2,82,25,584. The return was filed before the ITO based on PAN jurisdiction. The case was selected for scrutiny, and a notice under Section 143(2) dated 12.08.2013 was issued by the ITO, Roorkee. Subsequently, realizing that jurisdiction vested with the ACIT/DCIT under CBDT Instruction No. 1/2011, the ITO transferred the case to the ACIT, Circle Haridwar. Thereafter, the DCIT continued the assessment proceedings by issuing notice under Section 142(1) and completed the assessment under Sections 143(3)/144. The CIT(A) upheld the assessment. Before the Tribunal, the assessee raised additional legal grounds challenging the jurisdiction of the ITO to issue the notice under Section 143(2).
Procedural History
The Tribunal admitted the additional grounds, holding that they involved pure questions of law going to the root of the assessment and that all relevant facts were already on record. It proceeded to decide the jurisdictional issue before examining the merits.
Legal Issue
Whether the assessment was valid where the notice under Section 143(2) had been issued by an Income Tax Officer lacking pecuniary jurisdiction under CBDT Instruction No. 1/2011 and no fresh notice under Section 143(2) was issued by the jurisdictional DCIT.
