Case Law Details
Jigna Chetan Mehta Vs ACIT (ITAT Kolkata)
ITAT Kolkata case, Jigna Chetan Mehta Vs ACIT, delves into the necessity of a valid notice under section 143(2) of the Income-tax Act, 1961, for subsequent assessment proceedings. The case examines whether the absence of such notice could lead to the quashing of these proceedings.
This appeal, filed by the assessee, opposes the order by the CIT(A), NFAC, and the assessment order by ACIT, Kolkata under section 143(3) r.w.s. 147 of the IT Act. The grounds for this appeal include lack of jurisdiction, failure to apply mind, ignoring transaction nature, among others. The assessee’s primary contention is that the ACIT lacked jurisdiction over the assessee, given that the total income was below Rs. 20 lakhs, which should have ideally fallen under the jurisdiction of an Income Tax Officer. It was further contended that the issuing of notices under section 148 and 143(2) by ACIT was invalid, rendering the subsequent assessment liable to be quashed.
Upon examining the arguments and facts, the ITAT agreed with the assessee. The authorities highlighted the essentiality of a valid notice under section 143(2) for subsequent proceedings. The revenue department failed to provide any contrary evidence to refute this claim. As the ACIT had no valid jurisdiction at the time of issuing the notice, the assessment proceedings were consequently quashed. The ruling was consistent with the jurisprudence set by the jurisdictional High Court in the case of PCIT Vs. Shree Shoppers Ltd.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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