Raju Biswas Vs ITO (ITAT Kolkata)
ITAT Kolkata held that issuance of notice under section 143(2) of the Income Tax Act by non-jurisdictional Assessing Officer renders assessment bad-in-law. Thus, assessment order is bad-in-law and hence liable to be quashed.
Facts- The assessee filed his return of income u/s 139(4) of the Act on 25.03.2018 disclosing total income of Rs.8,30,210/-. The assessee shown a sum of Rs.6,26,486/- as his agricultural income and claimed the same to be exempt from taxation. However, AO only considered a sum of Fs.73,530/- as agricultural income of the assessee and made the impugned addition of the remaining amount of Rs.5,52,956/- treating the same as income from undisposed sources.
The assessee has contested the validity of the aforesaid additions not only on merits but also on the ground that the concerned AO did not have the pecuniary jurisdiction to pass the assessment order.
Conclusion- Hon’ble Supreme Court in the case of ‘ACIT vs. Hotel Blue Moon’ reported in 321 ITR 362 (SC) that the issue of notice u/s 143(2) is sine qua non to assume jurisdiction to proceed with the assessment in a case. If the said notice had been issued by the Assessing Officer who did not have the jurisdiction over the assessee, then such notice is to be treated as non-est. The assessment carried out in such cases will be bad in law.
