Haneef Akbar Basha Vs ITO (ITAT Chennai)
Assessment quashed for lack of jurisdiction – Order by non-jurisdictional AO held void ab initio; participation by assessee irrelevant – ITAT Chennai
In Haneef Akbar Basha vs ITO (A.Y. 2017-18), the assessee raised additional jurisdictional grounds contending that the assessment u/s 144 was passed by ITO, Ward-2 Tiruvannamalai, whereas PAN jurisdiction and address of the assessee fell under ITO, Ward-2 Vellore. The Tribunal admitted the additional grounds as they went to the root of the matter.
On examining PAN transfer history and proceedings chronology, the ITAT found that return filing and later rectification orders were handled by the Vellore AO, and no valid transfer order u/s 127 existed authorising Tiruvannamalai AO to pass assessment. Since jurisdictional defects strike at the authority of the AO, they cannot be cured by participation of the assessee or by section 292BB.
Relying on Supreme Court and High Court precedents, the Tribunal held that an order passed by a non-jurisdictional AO is null and void. Accordingly, the assessment order dated 08-12-2019 and consequential appellate order were quashed, and other grounds on merits were treated as academic. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
