Tirlok Singh Vs DCIT (International Taxation) (ITAT Delhi)
In the case of Tirlok Singh vs. DCIT (International Taxation), the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal of the assessee, setting aside the reassessment framed under Section 147 read with Section 143(3) of the Income Tax Act. The central issue was the jurisdictional validity of a notice issued under Section 148 by the Income Tax Officer (ITO), Ward-3, Kurukshetra. Tirlok Singh, an NRI during the relevant assessment year (AY 2009-10), was issued the notice based on cash deposits of ₹70.03 lakh in his bank account. Despite multiple correspondences where he informed the tax authorities of his NRI status, the ITO continued proceedings. Only after representations to the Joint Commissioner of Income Tax (JCIT) was the case transferred to the DCIT (International Taxation), Gurgaon, who later completed the assessment without issuing a fresh Section 148 notice or recording independent reasons.
The ITAT held that since the original reopening was initiated by an officer lacking jurisdiction, the notice and subsequent reassessment were void ab initio. The tribunal emphasized that jurisdiction lies with the appropriate officer—in this case, the DCIT (International Taxation). The absence of a valid notice from the jurisdictional officer rendered the reassessment legally unsustainable. Relying on precedents including Manjit Singh vs. DCIT (International Taxation) and others, the tribunal ruled that procedural lapses concerning jurisdiction cannot be cured by mere transfer of the case. As a result, the reassessment order was quashed, and the appeal was allowed in favour of the assessee.
