Issuance of notice u/s. 148 by Income Tax Office having no jurisdiction is void

Satya Pal Vs ITO (ITAT Delhi)

ITAT Delhi held that issuance of notice u/s. 148 of the Act by the Income Tax Officer having no jurisdiction over the assessee and consequent assessment made u/s. 143(3) read with section 147 of the Act is void and bad in law.

Facts- Three appeals are filed by different assessees of same ground, vide the present appeals, it is mainly contesting that initiation of proceedings u/s 147/148 of the Income Tax Act against the appellant is without any reasonable cause. Appellant also contested the computation of Long Term Capital Gain on transfer of agricultural land done in an earlier year but charged during the year by assuming the cost of acquisition and indexation cost without any material.

Conclusion- Held that there was a transfer order passed by the Revenue transferring the cases to Income Tax Officer, Ward 3(4) Gurgaon. Therefore, the Income Tax Officer, Ward 4(5) Gurgaon, has no jurisdiction over the assessees. In the circumstances, issue of notice under section 148 of the Act by the Income Tax Officer, Ward 3(4) Gurgaon and consequent assessment made under section 143(3) read with section 147 of the Act is void and bad in law. Thus, we quash the re-assessment order passed by the Income Tax Officer, Ward 3(4) for the assessment year 2010-11 in all these three cases.

FULL TEXT OF THE ORDER OF ITAT DELHI

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