Delhi HC Quashes Reassessment Proceedings as section 147 Notice Issued by Non-Jurisdictional Officer

Saroj Sangwan Vs ITO (ITAT Delhi)

Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi delivered a landmark judgment on 17th May 2024, in the case of Saroj Sangwan Vs Income Tax Officer (ITO), addressing crucial issues surrounding Section 148 of the Income Tax Act. This case, pertaining to the assessment year 2011-12, scrutinizes the procedural integrity and jurisdictional authority of the Income Tax Department’s reassessment proceedings. The appellant, Saroj Sangwan, challenged the validity of the reassessment notices and orders issued by non-jurisdictional officers, raising significant questions about the principles of natural justice and statutory compliance.

Detailed Analysis

The appeal centered around several grounds, primarily focusing on the jurisdictional legitimacy of the reassessment notice under Section 148 issued by the Income Tax Officer, Ward 69(1), New Delhi. Key arguments and legal precedents were presented to challenge the procedural validity of the reassessment process:

1. Jurisdictional Errors and Procedural Invalidity: The appellant contended that the reassessment notice under Section 148 was issued by an officer who did not possess the jurisdiction over her case. The subsequent transfer of the file to the jurisdictional officer, ITO Ward 4(1), Gurgaon, was argued to be procedurally flawed, rendering the reassessment order invalid. This argument was supported by referencing similar cases such as Nishi Kapoor Vs ITO and Hynoup Food & Oil Industries Ltd. Vs ACIT, where reassessments were quashed due to jurisdictional discrepancies.

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