S.K. Industries Vs ACIT (Delhi High Court)
S.K. Industries, through its partner, challenged the assessment order dated 31st March, 2016 passed under Sections 144/143(3) of the Income Tax Act, 1961. The principal ground was that the assessment had been completed without the Assessing Officer having jurisdiction over the assessee issuing notice under Section 143(2) within the prescribed time.
Read SC Judgment in this case: SC Dismisses SLP Against Assessment Quashed for Untimely Section 143(2) Notice
The judgment records that on 28th March, 2010, the Commissioner of Income Tax (Central), New Delhi transferred the petitioner’s jurisdiction under Section 127 from the AO of Circle VIII to the AO of Circle 8(1), New Delhi. The assessee filed its return of income on 29th September, 2013 in the office of the AO of Circle 8(1), declaring a loss. On 3rd September, 2014, Respondent No. 2, ACIT, Circle 31(1), issued notice under Section 143(2), although that AO had no jurisdiction over the assessee. Subsequently, on 21st July, 2015, Res
pondent No. 1, the AO having jurisdiction over the petitioner, issued notice under Section 142(1) concerning AY 2013-14.
The petitioner responded on 27th July, 2015 stating that the proceedings should be ignored because it had not received notice under Section 143(2) from the jurisdictional AO within the prescribed time, which the petitioner stated expired on 30th September, 2014. Another notice was issued by Respondent No. 2 on 8th September, 2015. The petitioner again pointed out the limitation issue in its response dated 23rd March, 2016 and requested that the assessment proceedings be dropped. The petitioner also referred to an earlier decision of the Court dated 5th May, 2015 in WP(C) No. 664/2015, where an assessment order had been quashed on the ground that the concerned AO had not issued notice within the statutory time limit.
