Case Law Details
Monarch & Qureshi Builders Vs ACIT (ITAT Mumbai)
Introduction: In a recent case, Monarch & Qureshi Builders contested an order by the Income Tax Appellate Tribunal (ITAT) Mumbai, challenging the jurisdictional deficiency in the Section 143(2) notice. The case delves into issues arising from an assessment for the A.Y. 2014-15 and the subsequent quashing of the assessment order.
Detailed Analysis: The dispute originated when the Assessee, Monarch & Qureshi Builders, declared income and faced scrutiny under CASS. The Assessing Officer made significant additions under Section 43CA of the Income Tax Act, 1961. The Assessee contested this, arguing that Section 43CA was not applicable as sales were made before April 1, 2013.
The case took a crucial turn when the Assessee raised a jurisdictional ground, asserting that the Section 143(2) notice was issued without proper authority. Referring to CBDT Instruction No.1/2011, the Assessee claimed that the Income Tax Officer (ITO) lacked jurisdiction to issue the notice as income exceeded Rs. 30 lakhs, requiring the involvement of Deputy Commissioners/Assistant Commissioners.
The ITAT, while allowing the Assessee to raise this additional ground, examined the CBDT instruction and relevant case law. It relied on the judgment in Ashok Devichand Jain vs UOI & Ors, highlighting that a notice issued by an officer without jurisdiction is inherently defective and not curable.
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