Raman Pillai Sivasankara Pillai Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that ITO Ward-3(1), Chandigarh had no jurisdiction to issue notice to an NRI and hence consequently the assessment as framed by Assessing Officer International Taxation is bad-in-law.
Facts- The issue involved herein is that ITO, Ward-3(1), Chandigarh has issued notice u/s. 148 on 31.03.2016 with the approval of PCIT.
It is argued that without there being any request by the assessee to transfer the case to the DCIT (International Taxation), Chandigarh, the case was transferred to the DCIT, (International Taxation), Chandigarh vide letter dated 10.08.2016 and the same is borne out from the order of the Assessing Officer Ward-3(1), Chandigarh wherein, he on his own transferred the case records, along with the notice u/s 148 to the DCIT, International Taxation, Chandigarh. The DCIT, International Taxation, without any fresh issue of notice u/s 148, framed the assessment in the status of non-resident and made an addition of 28.50 lacs in respect of the cash deposit in the bank account maintained with Syndicate Bank, Sector-17, Chandigarh.
It is contended that neither the ITO Ward-4(4), Chandigarh or the ITO Ward-3(1) had the jurisdiction, as the assessee was NRI and the approving authority i.e. PCIT-1, Chandigarh, also did not have any jurisdiction to give sanction for notice u/s 148 and, thus, the proceedings as initiated u/s 148 are void on account of the fact that, initiation of the proceedings by the AO are without jurisdiction.
