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Case Law Details

Case Name : Ajay Kumar Vs ITO (ITAT Amritsar)
Appeal Number : ITA No. 448/Asr/2019
Date of Judgement/Order : 20/06/2023
Related Assessment Year : 2017-18
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Ajay Kumar Vs ITO (ITAT Amritsar)

Introduction: The Income Tax Appellate Tribunal (ITAT) of Amritsar recently invalidated an assessment order due to the assessing officer citing the wrong jurisdiction section. The case, Ajay Kumar Vs ITO, revolves around the validity of a notice issued under section 153A of the Income Tax Act, 1961 for Assessment Year (AY) 2017-18, which the ITAT held as invalid. This decision reaffirms the significance of the correct application of law and the limits of the tribunal’s jurisdiction.

Analysis: The ITAT, while considering the appellant’s grounds, primarily focused on the legal ground that the notice issued u/s 153A by the Assessing Officer (AO) was illegitimate as it couldn’t be issued for AY 2017-18, making the assessment invalid and therefore liable to cancellation. It became clear during the proceedings that the AO had issued notice u/s 153A for AY 2017-18, which was outside the permissible 6 years from the requisition date under u/s 132A.

ITAT, in light of the facts and referring to precedents, held that the assessment framed u/s 153A r.w.s 143(3) was bad in law and without jurisdiction, therefore, cancelled as void ab initio. The CIT(A)’s order, which affirmed the AO’s decision, was also declared unlawful and hence quashed.

Conclusion: The ITAT Amritsar’s ruling in Ajay Kumar Vs ITO sets a clear precedent that procedural law, including correctly citing jurisdiction sections, is a crucial aspect of assessment orders. If an assessment order cites the wrong section of jurisdiction, the entire order can be declared void ab initio. This judgment underscores the importance of careful application of tax laws and the consequences of deviating from prescribed legal procedures.

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