Regional Oilseeds Growers Co-operative Societies Union Ltd. Vs JCIT (ITAT Bangalore)
The Regional Oilseeds Growers Co-operative Societies Union Ltd. recently found its appeal dismissed by the ITAT Bangalore concerning the jurisdiction of the authority who passed the assessment order. The order, dated 18th July 2023, was remanded to the Tribunal by the Karnataka High Court for further verification.
The appeals stem from a previous order by the Karnataka High Court, specifically ITA No. 30/2019, where the Court directed the Tribunal to scrutinize whether an order under section 120(4)(b) of the Income Tax Act had been issued. The Tribunal’s reevaluation was to be confined to the assessment years 2012-13 and 2013-14.
The arguments presented by both sides revolved around the absence of an order under section 120(4)(b), which, according to the appellant, rendered the assessment order passed by the JCIT (Joint Commissioner of Income Tax), Davengare, without jurisdiction. On the contrary, the respondent relied on Notification No. 267/2001 to assert that the JCIT was authorized to exercise the powers and functions of the Assessing Officer.
The Tribunal analyzed the provisions of the Income Tax Act, particularly section 120(4)(b), and emphasized the limitations on challenging the jurisdiction of the authority who passed the assessment order, as outlined in section 124(3). The Tribunal referred to judicial precedents, including the decision of the Allahabad High Court in CIT vs. British India Corporation Ltd., and concurred that jurisdictional disputes cannot be raised after the completion of assessment proceedings.
