Case Law Details
Kalinga Institute of Industrial Technology Vs DCIT (Orissa High Court)
The petitioner challenged the assessment order dated 30.12.2016 for Assessment Year 2014-15, the consequential demand notice issued under Section 156 of the Income Tax Act, and the notice issued under Section 143(2), contending that they were illegal, without jurisdiction, and violative of the principles of natural justice. The assessment order raised an additional tax demand of ₹24,96,42,960. The writ petition specifically assailed the assessment order (Annexure-1), the demand notice (Annexure-2), and the notice under Section 143(2) (Annexure-13). The Joint Commissioner of Income Tax (OSD) (Exemption), Bhubaneswar, filed an affidavit stating that jurisdiction over the assessee was validly vested with the concerned exemption circle and that the assessment under Section 143(3) had been completed based on the materials available on record. The High Court observed that the affidavit itself established that jurisdiction vested with the Commissioner of Income Tax (OSD) (Exemption). Consequently, it held that the notice issued under Section 143(2) by the Assistant Commissioner of Income Tax, Corporate Circle-1(2), Bhubaneswar, was without jurisdiction. The Court, however, declined to express any opinion on the assessment order and the consequential demand notice because both were appealable orders under the Income Tax Act. Accordingly, the High Court quashed the notice issued under Section 143(2) while leaving it open to the competent authority having jurisdiction to issue a fresh notice in accordance with law. The writ petition was allowed only to the extent of setting aside the jurisdictionally defective notice, without interfering with the assessment order or demand notice.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
By way of this writ petition, the petitioner has assails the order of assessment dated 30.12.2016 passed by opposite party No.1 for the assessment year 2014-15 by raising an extra demand of Rs.24,96,42,960, to be illegal, without jurisdiction and violative of natural justice.
As it appears, petitioner herein challenges the orders under Annexure-1, the order assessment, Annexure-2, the demand under Section 156 of the Income Tax Act, 1961 and Annexure-13, the notice under Section 143(2) of the Income Tax Act.
Affidavit has been filed by the Joint Commissioner of Income tax (OSD) (Exemption), Bhubaneswar on 08.01.2018, wherein, at paragraph-9, it is stated as follows:-
“…. Therefore, jurisdiction over the assessee is validly vested with the Circle. Accordingly, having proper jurisdiction over the assessee, the assessment u/s. 143(3) of the IT Act for the Asst. Yr.2014-15 was completed on 30.12.2016 as per provisions of Income Tax Act, 1961basing on the materials available on record ”
From the above, it is clearly established that the jurisdiction is with the Commissioner of Income Tax (OSD) (Exemption). Therefore, the notice under Annexure-13 issued by the Assistant Commissioner of Income Tax, Corporate Circle-1(2), Bhubaneswar, is without jurisdiction. However, we are not expressing our opinion on Annexures-1 and 2, since those are appealable orders.
Accordingly, the notice under Annexure-13 is quashed/set aside. Further, it is open for the competent authority to issue appropriate notice to the petitioner in accordance with law.
The writ petition is allowed to the extent indicated above.
Issue urgent certified copy of the order on proper application.
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