Case Law Details
ITO Vs BPO Finance and Investments Pvt Ltd (ITAT Kolkata)
ITAT Kolkata held that once the jurisdiction of the assessee is transferred from Delhi to Kolkata, every action for all the assessment year lies with ITO, Kolkata. Accordingly, notice issued u/s 148 by ITO, New Delhi is bad and illegal.
Facts- The present appeal has been filed by the revenue contesting that whether CIT(A) has erred in quashing the addition of Rs. 1,85,000,00/- made by the Assessing Officer on account of share capital and premium in the course assessment in absence of identity of the creditors, genuineness and creditworthiness of the entire transactions.
Notably, CIT(A) deleted the additions on the legal ground relating to the validity of the assessment framed by the Assessing Officer, which issue, has not been raised at all by the revenue through grounds of appeal despite bringing this fact to the knowledge of the concerned authorities and giving sufficient opportunities. However, considering the principles of natural justice, we proceed to adjudicate the issue relating to the action of the CIT(A) in setting aside the assessment holding the same as bad in law.
Conclusion- CIT(A) duly held that at the time of passing of order by CIT-I Delhi transferring jurisdiction from ITO, Ward 3(3), New Delhi dated 04/01/2010 to ITO. Ward 6(1), Kolkata, there is no proceedings pending before the ITO, Ward 3(3), New Delhi. The CIT-I, Delhi passed order u/s 127 of the Act on 04/01/2010 transferring the jurisdiction of the assessee to ITO, Ward 6(1), Kolkata and the jurisdiction in respect to every action for all assessment years lies with the ITO, Ward 6(1), Kolkata and only he is competent to issue notice u/s 148 of the Act. In such circumstances, the notice issued u/s 148 of the Act by the ITO, Ward 3(3), New Delhi is bad and illegal in view of the clear provisions of the Act because an order for transfer of case was validly made by CIT and the purpose for transfer was simply that all future proceedings are to be taken by ITO, Ward-6(1), Kolkata w.e.f. 04/01/2010. Hence, the notice issued u/s 148 of the Act dated 25/03/2010 is quashed.
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