Rungta Irrigation Limited Vs ACIT (ITAT Kolkata)
The assessee challenged the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2015-16. A legal ground was raised before the Tribunal contending that the assessment was void because the mandatory notice under Section 143(2) had been issued by ACIT, Circle-21(1), New Delhi, who lacked jurisdiction over the assessee.
The assessee’s jurisdiction had originally been transferred from DCIT, Circle-15(1), New Delhi to DCIT, Central Circle-1, Ranchi by an order under Section 127 dated 08.10.2008. For AY 2015-16, the return of income was filed on 30.09.2015. Despite the earlier transfer, ACIT, Circle-21(1), New Delhi issued a notice under Section 143(2) on 28.07.2016 and a notice under Section 142(1) on 30.06.2017. The assessee objected to the jurisdiction of the New Delhi officer.
Subsequently, the Principal Commissioner of Income Tax, Central, Patna transferred the case under Section 127 to ACIT, Central Circle-3(1), Kolkata by order dated 03.11.2017. The Kolkata Assessing Officer issued a notice under Section 142(1) and completed the assessment under Section 143(3) on 29.12.2017 without issuing a fresh notice under Section 143(2).
Procedural History
The Commissioner (Appeals) upheld the assessment.
Before the Tribunal, the assessee raised an additional legal ground challenging the validity of the assessment on account of absence of a valid notice under Section 143(2). The Tribunal admitted the legal ground, holding that it involved a pure question of law.
