Brief of the case:
- The ITAT Delhi in the case of Raj Kumar Mangla vs. ACIT(Inv Circle), Gurgaon held that when a clear order transferring the jurisdiction is passed by a competent authority in law the AO from whose jurisdiction transfer was ordered can no longer assume his jurisdiction over the assessee.
- Therefore, any notice issued or any order passed by AO after getting such direction would be illegal as made without any jurisdiction.
Facts of the case:
- The assessee was an employee of M/s. Ravi Trading Co., Gurgaon. He used to derive his income from salary/commission and other sources and was assessed to tax by the ITO, Gurgaon.
- e.f 30.06.1988 the assessee commenced his proprietorship business in the name of and style of M/s. Deep Electricals at Shop No.20, 1st Floor, 1767/68, Bhagirath place, Chandni Chowk, Delhi. He obtained, State Sales Tax/ Central Sales Tax registration certificates from Govt of Delhi. He also paid advance tax for the relevant and subsequent assessment years with, I.T.O., Ward 10(1), New Delhi, as the assessee was of the opinion that his place of business falls within the territorial jurisdiction assigned to ITO, Ward 10(1), New Delhi. The assessee continued to reside at Gurgaon.
- ACIT(IC), Gurgaon issued noticed under section 148 for assessment year 1989-90, 1990-91 and 1991-92. In response to these notices, the assessee filed a reply that ACIT(IC) Gurgaon has no jurisdiction over him as he had left the employment of M/s Ravi Trading Co. and he has started his own proprietary business at Bharigarh Palace, New Delhi and had filed returns of income with ITO-10(1), New Delhi.
- The AO on 31.03.1995 framed separate assessment orders for all the three years. Aggrieved the assessee carrying the matter in appeal. The CIT(A) held that since assessee had not moved out of Gurgaon jurisdiction continued to vast with Assessing Officer Gurgaon unless on the request of the assessee his case was transferred to the Assessing Officer of another District. The process of filing of return therefore did not automatically if so faster given the correct jurisdiction to the assessing officer who processed the return in a mechanical manner. This view is supported by Hon’ble Supreme Court in the case of Industrial Trust Ltd. Vs. CIT 91 ITR 550.
- Aggrieved assessee is in appeal before ITAT.
Contention of the Assessee:
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