PCIT Vs Naveen Kumar Gupta (Delhi High Court)
Delhi High Court held that as AO didn’t assume jurisdiction under section 153C of the Income Tax Act, recourse to section 147 of the Income Tax Act for reassessment proceedings justified. Accordingly, appeal by revenue allowed.
Facts- The Revenue has filed the present appeal u/s. 260A of the Income Tax Act, 1961 impugning an order dated 09.12.2021 passed by the Income Tax Appellate Tribunal. Notably, ITAT had allowed the appeal preferred by the respondent/assessee against an order dated 26.11.2019 passed by the Commissioner of Income Tax (Appeals), whereby the assessee’s appeal against the assessment order dated 26.12.2018 passed u/s. 147 r.w.s. 143(3) of the Act in respect of assessment year 2011-12 was dismissed.
Conclusion- In the event, the AO does not assume it’s jurisdiction to proceed with making an assessment/ reassessment under Section 153C of the Act, recourse to Section 147/148 is not ousted. The non obstante provision kicks-in only on the AO assuming the jurisdiction under Section 153C of the Act, that is, if the AO exercises its jurisdiction to initiate the machinery provisions of Section 153C of the Act to make an assessment/reassessment of the assessee’s income for the stipulated period. The non obstante provisions do no come into play, if the AO does not take recourse to provision of Section 153C of the Act.
