K.A. Wires Ltd. Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata allowed the assessee’s appeal by holding that the assessment was invalid because the mandatory notice under Section 143(2) of the Income-tax Act, 1961, was not issued by the Assessing Officer having jurisdiction over the assessee. The assessee, engaged in the business of zinc manufacturing, had filed its return for Assessment Year 2012-13 declaring a loss. The Assessing Officer completed the assessment under Section 143(3), determining taxable income after, among other things, making an addition of ₹1.40 crore under Section 68 in respect of share capital and share premium received from three associate companies, including a protective addition of ₹40 lakh in the hands of intermediary companies. The Commissioner of Income Tax (Appeals) upheld the assessment, following which the assessee approached the Tribunal.
Before the Tribunal, the assessee raised an additional legal ground contending that the assessment was void because no valid notice under Section 143(2) had been issued by the Assessing Officer vested with jurisdiction. The assessee submitted that its jurisdiction had always remained with ITO, Ward-8(3), Kolkata, as reflected in its PAN records and income tax returns for earlier, relevant, and subsequent assessment years. However, the notice under Section 143(2) dated 06.08.2013 was issued by ITO, Ward-33(1), Kolkata, after which the case was transferred to the jurisdictional officer, who completed the assessment without issuing a fresh notice under Section 143(2).
